MANILA, Philippines - Properly giant Ayala Land Inc. (ALI) has acquired the stake owned by Saudi Arabian Prince Alwaleed Bin Talal’s Kingdom Hotel Investment (KHI) in the posh Fairmont Hotel and Raffles Suites and Residences project in Makati for $24.11 million or around P1 billion.
The transaction follows the string of divestments made by KHI’s parent firm Kingdom Holding Co. as part of a plan to focus on higher-earning properties.
Kingdom Holding has been evaluating its portfolio of hotels assets as well as its hospitality and real estate investments to “reconfigure the overall strategy to capture greater benefits.”
ALI said the purchase of its partner’s stake in the 30-story Fairmont and Raffles project was in line with the group’s thrust to grow its commercial leasing business.
“The luxury project will add 32 Raffles suites and 280 Fairmont hotel rooms to subsidiary AyalaLand Hotels & Resorts Corp.’s growing hotel portfolio,” ALI said.
ALI said the landmark project, started in 2008, will complement the various offerings of the Makati Central Business District and fortify its position as the country’s premier financial district.
Located on the corner of Arnaiz and Makati Avenues in the Greenbelt complex, the project will feature a 900-square meter ballroom that can accommodate nearly 700 diners.
The Fairmont is slated to open in December this year.
ALI said it expects the continuing sale of units in the Raffle Residences will generate immediate cash while the operation of the hotel and serviced apartments will augment and diversify the sources of recurring revenues.
ALI owns the Intercontinental Manila in Makati, Marriott Hotel in Cebu and El Nido Resorts.
The group is currently building its first four businessman’s hotels under the Kukun brand in Bonifacio Global City, Cagayan de Oro, Davao and Nuvali in Laguna. The first two hotels are slated to be operational this year.