Hotel group in talks over $350mn loan

LOANS BID: The Prince Alwaleed bin Talal-backed group is seeking $350 million in new debt. (Getty Images)

Kingdom Hotel Investments, the hospitality group backed by Prince Alwaleed bin Talal, will seek as much $350 million in new debt by the end of 2008 amid project cancellations in Asia.

The group is in advanced discussions with various lenders, CEO Sarmad Zok said in a statement received by email on Thursday.

Kingdom said it would not proceed with sales of land the company acquired in Phang Nga in Thailand while at the same time canceling the residential component of a project in Da Nang, Vietnam.

The company has also cancelled a planned expansion of its Four Seasons Hotel in Langkawi, Malaysia because of “cost escalation and overall market conditions”.

Kingdom Hotel Investments posted an eight percent increase in first-half profit.

Headquartered in Dubai, the company has ownership interests in 33 properties in 21 countries including 23 operating hotels and resorts and 10 hotels and resorts currently under construction or in the initial stages of development. KHI is listed on the Dubai International Financial Exchange and London Stock Exchange.

Print | Email | Discuss this article |

READERS' COMMENTS

View all comments (0)

Have your say

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM