ALI to build $153-M Makati luxury hotel

Property giant Ayala Land Inc. (ALI) and Dubai-based Kingdom Hotel Investments signed yesterday an agreement to jointly develop a $153-million luxury hotel complex in the Makati financial district.

In a disclosure to the Philippine Stock Exchange, ALI said the project, located on a 7,377-square meter property at the corner of Makati Avenue, and Arnaiz Avenue, would comprise a 300-room Fairmont Hotel, a 30-suite Raffles Hotel and 189 Raffles-branded private residences.

Kingdom Hotel, a hotel and resort investment firm, is chaired by Saudi Prince Alwaleed bin Talal Abdulaziz Alsaud who has significant investments in leading international management companies, namely Four Seasons Hotel and Resorts, Fairmont Hotels and Resorts, Raffles Hotels and Resorts and Movenpick Hotels and Resorts.

Headquartered in Dubai, UAE, Kingdom Hotel develops, acquires, finances and actively manages high-quality hotels in key city and resort destinations in the Middle East, Africa and in Asia and Eastern Europe.

Due to its industry focus and diversified investment portfolio, Kingdom Hotel is a prominent hospitality-related private equity company with an underlying portfolio consisting of 33 hotels, of which 19 are operational and 14 under development.

In November 2006, the Ayala Group and Ocmador Philippines B.V. sold their combined equity interest of 100 percent in Oakwood Premier Ayala Center, a deluxe serviced apartment within the Makati central business district, to Ascott Resident Trust (ART) for P2.7 billion.

ART is part of Singapore-listed property developer CapitaLand Ltd. and the first Pan-Asian serviced residence real estate investment trust (REIT).

ALI said the sale is part of the group’s strategy to dispose its non-core assets in order to maximize shareholder value.

Oakwood will continue to operate the serviced apartment until March 22, 2007 and then will transfer management to the Ascott Group, which has an extensive portfolio of close to 17,000 serviced residence units in key cities of the Asia-Pacific region, Europe and the Middle East.

Oakwood Premier Ayala Center first opened in 1999, and was both Manila ’s first luxury serviced residence and the inaugural property of the Oakwood Premier luxury brand.