Kingdom in $35mn Raffles acquisition

Hotel Investments (“KHI”) is acquiring the Raffles Grand Hotel d’Angkor in Siem Reap
and the Raffles Hotel Le Royal in Phnom Penh for a total consideration of
approximately US$35 million. These acquisitions are KHI’s first in Cambodia
and reflect the Group’s investment and diversification strategy in high
growth emerging markets.
  The Raffles Hotel Le Royal opened in 1929 and is located in the heart
of Phnom Penh, the commercial, political and cultural hub of Cambodia. This
170-room French-colonial style hotel is situated in a prime location on
18,000 square metres of leasehold land. It has excellent access to the
international airport and city attractions such as the Royal Palace and
National Museum.
  The Raffles Grand Hotel d’Angkor is the leading hotel in the northern
resort city of Siem Reap and has been awarded many international accolades.
Considered as a national landmark, the 125-room French-colonial style hotel
opened in 1932. It is located in 60,000 square metres of leasehold
landscaped grounds, just 8 kilometres away from the world-famous temples of
Angkor Wat, a UNESCO world heritage site.
  These transactions further expand KHI’s portfolio in Asia to eight
properties in six countries, now including the rapidly growing Cambodian
hotel market. Over the last eight years, according to the WTTC tourist
arrivals have increased at an impressive 19.1% Compound Annual Growth Rate
into Cambodia.
  Both hotels will continue to be managed by Raffles Hotels & Resorts.
  HRH Prince Alwaleed Bin Talal, Chairman of KHI, said:
  “Cambodia is an exciting new market for KHI. Demand for hotel
accommodation in the region has grown significantly in recent years and
Cambodia has benefited from increasing tourism and interest in the cultural
heritage and diversity of the region.”
  Sarmad Zok, Chief Executive Officer of KHI, said:
  “We are delighted to have acquired two established hotels in one of
Asia’s fastest growing tourist markets. Both are in prime locations in
Cambodia, which according to the WTTC ranked (in 2006) the 11th highest in
the world for demand growth expectations. KHI is very well positioned to
drive shareholder value from this growth.”