Kingdom Hotel Investments, the owner of a portfolio of mostly Middle Eastern hotels, has announced it is to seek a listing on the Dubai International Financial Exchange.
The cash raised from the $1.5bn IPO will be used to expand its portfolio and represents a further push by Middle East money into the international hotel industry.
KHI is headed by Zarmad Zok and has Prince Alwaleed as its majority (55%) shareholder through his Kingdom Holding Company.
The IPO, the date of which is to be announced in a few weeks, is likely to see around 25% of the shares of KHI floated. Existing shareholders are holding onto stock and fresh capital is being raised.
Tim Hansing, senior vp of acquisitions and development, said that the focus of growth would be in emerging markets. Target territories include Asia-Pacific, South Asia, Africa, CIS states and Russia. The company has offices in Singapore and South Africa with one planned for India.
The current portfolio encompasses 26 hotels in 13 countries, of which 15 are operating with a total of 3,262 rooms. KHI has 25% stake in the George V in Paris.
During the nine months to September 30, revenues were up by 45% to $43.7m and net income was up 47% to $8.2m.
As well as the Dubai listing, which is targeting Middle Eastern investors, KHI is to offer Global Depository Shares on the London Stock Exchange which are expected to attract European institutional investors.
KHI is separate to Kingdom Hotels International which is the company buying Fairmont, although Prince Alwaleed has majority interests in both.