Nairobi News

HustleWhat's Hot

Arabian-owned Fairmont hotel sold for Sh1.8bn

An undisclosed local investor has formally acquired the Fairmont Mount Kenya Safari Club at Sh1.8 billion.

Kingdom Hotel Investments, a wholly owned subsidiary of the Saudi Arabian conglomerate, Kingdom Holding Company, has sold its 75 per cent stake in the famous hotel in a transaction that was closed on the first day of this month.

KHI Chairman Prince Alwaleed Bin Talal Bin Abdulaziz said the disposal deal was meant to enable the investor realise maximum value and begin diversifying into other ventures.

“This transaction marks yet another success for KHC’s value realisation strategy from growth market investments. The hotel will remain under the management of Fairmont Hotels & Resorts,” Mr Alwaleed said.

LOCAL BUSINESSMAN

Although the local investor’s identity was not readily revealed, sources privy to the deal intimated that a local businessman with interests in spirits and petroleum was behind the buy out.

However, a source close the trader denied this.

“People can say anything but I can assure you it is not my boss. I would have known,” said the source anonymously.

Kingdom chief executive Sarmad Zok who is also a member of KHC’s board of directors said the sale underlines KHI’s business capabilities and asset growth records.

“The sale of Fairmont Mount Kenya Safari Club adds to KHI’s orderly value realisation and capital redeployment record and speaks to the quality of our assets and our team execution,” Mr Zok said.

“We continue to be stakeholders in the asset through Kingdom’s interest in the management company FRHI,” he added. For over two decades, Kingdom has been a leading player in the global hospitality industry.