MANILA, Philippines - An Ayala Land Inc. (ALI) subsidiary bought the stake owned by a Saudi Arabian conglomerate in the luxury Fairmont Hotel and Raffles Suites and Residences project in Makati City.
In a disclosure to the stock exchange, ALI said AyalaLand Hotels and Resorts Corp. acquired the interests of Kingdom Hotel Investments (KHI) in the luxury project for $24.11 million (around P1 billion).
KHI is a subsidiary of Saudi Arabian conglomerate Kingdom Holding Company (KHC), which is chaired by Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud.
"The acquisition is in line with the company's thrust to grow its commercial leasing business," the property developer said.
The acquisition will add 32 Raffles suites and 280 Fairmont Hotel rooms to AHRC's hotel portfolio.
ALI said the continuing sale of units in the Raffles Residences will generate immediate cash. The operations of the hotel and serviced apartments will add to its recurring revenues.
The Fairmont Hotel, located at 1 Raffles Drive, Makati Avenue, is expected to open in December.