With continued conflicting reports about the level of freedom His Royal Highness Saudi Prince Alwaleed bin Talal has earned after his release from house arrest in Riyadh based on government-led corruption charges, HOTELS on Tuesday received comments from Kingdom Hotel Investments (KHI), a wholly owned subsidiary of the prince’s Kingdom Holding Co. (KHC), stating “business has continued to be as usual.”
KHI Chairman and CEO Sarmad Zok said, “KHC is a public listed company, appointed a CEO last year (Mr. Al Maiman) and is governed by a board of directors of which the Prince continues to be its chairman. The strategy is intact in both its conception and execution.” KHI owns 13 hotels managed by companies in which it holds significant stakes: Four Seasons Hotels and Resorts, AccorHotels and Mövenpick Hotels & Resorts.
Zok also said that the prince’s detention has not impacted the KHI hotel portfolio. “Since the year 2010 we have realized value to our shareholders by disposing most of our emerging market assets,” he said. “We continue to adopt a long-term strategy to our developed market assets. The activities of asset management, or M&A, were not affected by the situation and we continue to execute on that strategy. In fact, we were successful in completing two transactions that were initiated prior to the summer.”
Zok continued, “As the hospitality cycle enters another year of above average growth, amidst limits to supply, we look forward to enjoying further growth on our investments in the near- and mid-term future.”
Rumors about Alwaleed’s release
At the same time, the Saudi government also confirmed with Reuters on Tuesday that it has released all remaining detainees in its corruption probe. Reports have also surfaced in the UK’s Daily Mail suggesting Prince Alwaleed, 63, while released from detention at the Ritz-Carlton in Riyadh, is under house arrest and banned from leaving the country, according to a source close the Saudi crown prince.
Just before his release on Saturday, in a video interview with Reuters, Alwaleed said there were no charges against him and his detention was more about confidential discussions to alleviate any misunderstandings.
Then, Reuters reported again on Tuesday that Saudi officials said Alwaleed agreed to a settlement after admitting unspecified “violations.” It quoted a government official as saying the estimated value of settlements currently stands at more than US$106 billion represented in various types of assets, including real estate, commercial entities, securities, cash and other assets.
In yet another twist, Forbes reported on January 27 that a source said Alwaleed is giving up nearly all his assets, will be given an allowance and will only be allowed to travel abroad when accompanies by someone chosen by the Saudi government.