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Thu 15 Dec 2011 08:00 PM

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Saudi sheikh buys hotel group out of administration

MBI founder Al Jaber inks deal for Scotsman Hotel Group, pledges $100m investment in 2012

Saudi sheikh buys hotel group out of administration
Sheikh Mohammed Bin Issa Al Jaber said this week he had settled his battle with Standard Bank

Saudi businessman Sheikh Mohamed bin Issa Al Jaber has bought his Scotsman Hotel Group out of administration through his hospitality unit JJW Group, he said Thursday.

The deal for the group, which operates hotels in Edinburgh, Leeds and Paris, was completed on Dec 14, the founder of MBI Group said in an emailed statement.

The agreement was completed with 100 percent equity, the statement said. The value of the deal was not disclosed, but the statement said the group would see a $100m investment in 2012.

“There are major, exciting investment plans for hotels in the group over the course of next year,” a spokesperson for the hospitality group said. “The details of this will be announced in due course.”

The Scotsman Hotel Group operates properties including 42 The Calls in Leeds, Hotel de la Trémoille in Paris and Scotsman Hotel in Edinburgh.

Al Jaber said Wednesday he had settled his legal dispute with Standard Bank Group over $150m of unpaid loans, following a court battle in London. The resolution saw the global freezing order against the sheikh’s assets lifted, following a private settlement between the two parties.

Al Jaber had said the order had forced parts of his hotel business into administration and cost him more than £1bn ($1.55bn).

Separately, Al Jaber’s spokesman said an investment of $1.5bn had been made into MBI group, without specifying the source of the capital.

The company expects to announce a second acquisition by the year-end, MBI
Group said in an emailed statement on Wednesday.

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