Kingdom Hotel Investments announces 2007 financial performance

Sarmad Zok, CEO, said in a statement:

'As we reported on 3 March of this year, 2007 was an excellent year for KHI with strong financial performance underpinned by acquisitions and the strengthened performance of our existing investments in operating hotels. We also made considerable progress in the diversification of our portfolio across selective high growth markets, particularly expanding into new emerging Asian territories. KHI's financial results for the year ended 31 December 2007 confirmed the effectiveness of our strategy and investment selection.'

'This strong performance has continued into 2008 with first quarter System RevPAR growth in line with our expectations of mid-teen growth for the year despite the anticipated weaker trading in Kenya, and our outlook remains unchanged for the year. I am pleased to announce that we have concluded renovations at our InterContinental Lusaka hotel in Zambia, and the capacity expansion at the Mövenpick Bur Dubai is on time and within budget. We expect to integrate the adjacent suites building into the Dubai hotel during the second half of the year. We welcome the recent improvement to the security situation in Kenya and hope that the power-sharing agreement will enable the gradual return to more normalized trading conditions. Renovation of our two hotels in Kenya is proceeding but we expect completion to be delayed until the second half of the year.'

'Good progress is being made on the construction of our development projects. We expect to complete the Four Seasons Mauritius and Four Seasons Beirut properties later this year. We have also launched the off-plan sales and marketing programme for the Raffles Seychelles luxury residences and expect to begin marketing of the Raffles residences in Makati, Manila (Philippines) and Raffles residences in Da Nang (Vietnam) imminently.'

'I would like to take the opportunity to announce to shareholders that Mr. Saleh Al Ghoul has decided to retire from the Board where he served as non-executive Director and member of the Audit Committee. I am delighted to announce that the Board has approached Mr. Shadi Sanbar, Chief Financial Officer and Director of Kingdom Holdings Company, with an invitation to join the Board as a non-executive director. Furthermore, Mr. Tarek Abdel-Meguid has accepted to extend his Directorship for an additional year until 7 February 2009. A partner at Perella Weinberg Partners, Mr. Abdel-Meguid is an independent non-executive director and serves as a member of the Audit and the Remuneration Committees.'