Kingdom to invest in China hotels

Kingdom Hotel Investments could develop a network of up to 15 hotels in China’s second and third-tier cities over the next five years, according to a top official at the Saudi Arabia-based firm.

“We see a lot of growth in the second and third-tier cities in China, supported by a very strong and well-demonstrated government initiative to decentralize the economy into second -tier cities,” The Hong Kong Standard newspaper quoted KHI chief executive Sarmad Zok as saying.

The plan could cost $870 mn, based on the size of the group’s first investment in China, the paper said.