Kingdom Hotel Investments announces luxury Raffles resort development

The resort will be built for approximately US$ 65 million. This will be KHl's first hotel in Vietnam and marks an important milestone in the company's continued expansion in Asia.

Branded as Raffles Da Nang, the proposed resort will open in 2011 and feature approximately 150 hotel suites and 15 private residential villas for sale on 154,000 m2 of direct beachfront land. Raffles Da Nang will be the third international resort in this popular destination, located on the South China Sea.

Recognizing the growing demand for luxury accommodation in this region of Vietnam, KHI selected the property for its private beach front access and proximity to Da Nang, a major city located close to three UNESCO World Heritage sites. The city is a popular stop for holiday travelers and has excellent international airline connections to Singapore, Hong Kong, Bangkok and other key regional markets.

Raffles Da Nang will be KHl's third venture in Asia, following the purchase of the Mövenpick Karon Beach Resort in 2006, and the announcement earlier this year of a land acquisition for the development of a Raffles hotel in Phang Nga near Phuket (Thailand). The Da Nang acquisition was made through a joint venture company, which is 80% owned by KHI and 20% by European Hotels Corporation Ltd (EHC), KHl's joint venture partner in Phang Nga and Marrakech.

KHI continues to explore future expansion opportunities in the region.

HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud, Chairman of KHI, said:

'Vietnam is one of Southeast Asia's fastest growing economies and is ranked as having the 6th highest growth forecast in the world according to the World Travel & Tourism Council. As inbound leisure and business tourism increases, we will be well positioned to offer the market a leading international hotel property.'

Sarmad Zok, Chief Executive Officer of KHI, said: 'Raffles Da Nang Resort and Residences is ideally located on a pristine beachfront site on the famous China Beach, with a strong ancillary real estate offering. This transaction successfully demonstrates the company's ability to grow within Asia's emerging markets and be a leading player in an area fast becoming one of the most popular tourist destinations in the world.'