KUNSHAN, CHINA Kingdom Hotel Investments has sold its stake in the 387-key Swissôtel Kunshan for US$60.75 million, or US$157,000 per key, to Malaysia property developer TA Global.
Dubai-based Kingdom, controlled by Saudi Prince Alwaleed Bin Talal, expects the transaction to be completed in March. “We are delighted to realize value of this investment amid a buoyant transactions environment in growth markets,” Alwaleed says in a statement.
The transaction is in line with Kingdom’s ongoing strategy of realizing value from its existing assets, says Kingdom CEO Sarmad Zok. “This divesture unlocks significant capital, and we will continue to consider the sale of other assets as part of our capital allocation strategy,” he says.
TAG says the acquisition will be funded from internally-generated funds and external borrowings.
The 5-star Swissôtel Kunshan was originally built for US$59.3 million.
Jones Lang LaSalle Hotels represented Kingdom in the transaction.