ALI buys out Saudis from new hotel complex

LOCAL property giant Ayala Land Inc. has bought out Saudi conglomerate Kingdom Holding Co. from their partnership in the Fairmont Hotel and Raffles Suites and Residences project in Makati, thus taking 100 percent control of the project ahead of the opening of the newest hotel properties in the central business district.

In a disclosure to the Philippine Stock Exchange on Tuesday, ALI said its wholly owned subsidiary AyalaLand Hotels and Resorts Corp. (AHRC) had acquired the interests of Kingdom Hotel Investments and its affiliate in the project for $24.11 million.

KHI is a wholly owned subsidiary of Kingdom Holding, which in turn is chaired by Saudi Arabian Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud.

“This acquisition is in line with the compa- ny’s thrust to grow its commercial business,” the disclosure said.

This luxury project will add 32 Raffles Suites and 280 Fairmont Hotel in AHRC’s growing hotel portfolio.

“Furthermore, this landmark project will complement the various offerings of the Makati CBD and fortify its position as the country’s premier financial district,” the disclosure said.

Asked why the Saudis sold out ahead of the completion of these projects, AHRC replied to Inquirer: “The transaction is in line with KHI’s value realization strategy.” “However, KHI will continue to hold a financial interest in the project through Kingdom Holding Co.’s ownership stake in Fairmont Raffles Hotels International, the hotel operator,” the ALI subsidiary said.