Istithmar Hotels takes a strategic stake in International Hotel Investments
Istithmar Hotels of Dubai, a subsidiary of Istithmar, a leading private equity and alternative investment company, has announced today that it is to make a significant strategic investment in International Hotel Investments (‘IHI’) plc of Malta.
Istithmar Hotels has subscribed to Euro 178,000,000 in new shares issued by IHI, which will increase the Company’s share capital to Euro 500,000,000.
The investment by Istithmar Hotels will provide IHI with the financial resources to expand its business through the acquisition of new hotels and the development of landmark five star hotels in Europe and globally. The allotment of shares to Istithmar Hotels is subject to various statutory and regulatory approvals and it is intended the transaction will close by March 2007.
IHI has a strong hospitality investment portfolio focused on luxury hotels in different locations around the world. IHI’s investment model is a clear strategic fit with Istithmar Hotels, which is fast establishing itself as a major investor in high profile, luxury properties across the world. The partnership will enable Istithmar Hotels to grow its own investment portfolio across new geographical regions where it is seeking to expand its business.
Mr Khaled Al Kamda, Vice Chairman of Istithmar, said: ‘The investment by Istithmar Hotels in IHI is in line with Istithmar’s strategy of taking major strategic stakes in high quality companies with strong management teams and good growth potential and fits with our mission of achieving exceptional returns for our shareholders.’
Mr Joe Sita, CEO of Istithmar Hotels, added: ‘We welcome this opportunity to partner and support a company which has a proven track record in acquiring and developing hotels in various countries, including some of the more exciting and fast-growing cities in Europe.’
Mr Alfred Pisani, Chairman of IHI, commented: ‘This is a momentous occasion for a Maltese company, welcoming Istithmar Hotels as our partners with a substantial shareholding interest in IHI. Together, we will grow this company into a major hotel company.’
The Directors of IHI have also announced that they will endeavour to obtain a second listing of the Company on an international stock exchange within 12 months from closing.
IHI was founded in March 2000 by the Corinthia Group and has since acquired and developed five-star hotels in Malta (the Corinthia San Gorg Hotel), St Petersburg (the Corinthia Nevskij Palace Hotel and an adjoining development site), Budapest (the Corinthia Grand Hotel Royal) and Lisbon (the Corinthia Lisboa Hotel), to which are being added the hotels in Tripoli and Prague, besides an anticipated five new acquisitions over the coming months. IHI has also recently increased its shareholding in CHI Limited, a hotel management company, up to 70%, with the remaining 30% acquired by Wyndham Hotels Group of the United States.
Simultaneous to the issue of new shares to Istithmar Hotels, IHI is also acquiring the Corinthia Bab Africa Hotel & Commercial Centre in Tripoli and the Corinthia Towers Hotel in Prague, from the Corinthia Group of Malta, principally in return for new shares issued to Corinthia in IHI.
