Kingdom Hotel Investments acquires Four Seasons Hotel, Langkawi, Malaysia for USD114.2 million

The total purchase price is USD114.2 million.

The award-winning resort contains 91 suites and villas and is located on a 1.4 km stretch of pristine beach. The hotel occupies a 35-hectare site and opened in May 2005. It has since acquired a world-class reputation as a luxury destination in a fast-growing tourist area. With easy access to the international airport, the hotel enjoys an exclusive location with no direct competition.

The acquisition of this market-leading resort provides an excellent opportunity to add the only international branded hotel in the area to KHI's growing portfolio, with considerable potential to further develop the resort. KHI intends to expand the resort by adding an additional 20 keys and developing 14 luxury villas that will be sold as Four Seasons Residences. The expansion and development is expected to cost US$35 million and be completed in Q4 2008.

Set on Langkawi's Northern cape, the resort will be KHI's fourth venture in Asia. It follows the acquisition of a land lease for the development of a Raffles resort near Da Nang (Vietnam) in January 2007, 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 Four Seasons Langkawi acquisition was made through a joint venture company, which is 90% owned by KHI and 10% by European Hotels Corporation Ltd (EHC), KHI's joint venture partner in Da Nang, Phang Nga and Marrakech.

HRH Prince Alwaleed bin Talal bin Abdulaziz Alsaud, Chairman of KHI, said: "We continue to see considerable potential in the Asian region, demonstrated through the acquisition of this prime asset in an area of growing tourist activity." Sarmad Zok, Chief Executive Officer of KHI, said: "This is an exceptional hotel with attractive returns which will make a welcome addition to our portfolio. The acquisition boasts considerable upside in operating performance potential as well as the development of residential real estate."