A unit of Saudi Arabia's Kingdom Holding, the investment firm owned by billionaire Prince Alwaleed bin Talal, has announced the sale of its 75 percent interest in the Fairmont Mount Kenya Safari Club for $18 million.
The deal by Kingdom Hotel Investments (KHI) said it would continue to be stakeholders in the asset through Kingdom's interest in the management company FRHI, which runs the Fairmont brand.
Prince Alwaleed said in a statement: "This transaction marks yet another success for KHC's value realization strategy from growth market investments. The hotel will remain under the management of Fairmont Hotels & Resorts."
Sarmad Zok, chairman and CEO of KHI, added: "The sale of Fairmont Mount Kenya Safari Club adds to KHI's orderly value realization and capital redeployment record and speaks to the quality of our assets and our team execution.
"We continue to be stakeholders in the asset through Kingdom's interest in the management company FRHI."
For over two decades, Kingdom has been active in the global hospitality industry. In addition to its ownership stake in FRHI Hotels & Resorts, which comprises the Fairmont, Raffles, and Swissôtel brands, KHC holds significant interests in Four Seasons Hotels and Resorts and Mövenpick Hotels & Resorts.
KHC's hotel real estate portfolio comprises 20 owned hotels in 14 countries including the Four Seasons Hotel George V in Paris, The Plaza New York, The Savoy London, the Four Seasons Hotel Toronto, and the Fairmont San Francisco.
Kingdom also has minority stakes in some of the world's most high profile companies including Citigroup and Twitter.
Last month, Kingdom Holding posted a 12.6 percent rise in second-quarter net profit as its income increased and costs fell.
Kingdom made a net profit of 238.3 million riyals ($63.6 million) in the three months to June 30, up from 211.7 million riyals in the same period a year earlier.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.