DUBAI (Reuters) - Kingdom Hotel Investments KHI.DI (KHIq.L: Quote, Profile, Research, Stock Buzz) will buy at least three more hotels in Asia in 2007 and is targeting the region for further expansion in 2008, the group's Chief Executive Sarmad Zok said on Tuesday.
Zok said Kingdom Hotel does not expect to pay a dividend this year as the company invests in growth.
"We're in high growth mode, we're spending the money. I don't think anyone is expecting dividends for this year," Kingdom Chief Executive Officer Sarmad Zok said.
The company, controlled by Saudi Prince Alwaleed bin Talal, said in its full year results for 2006 that revenues were up 68 percent at $99 million, and future cash flows could fund between $200-300 million of additional purchases in the next 24 months.
Zok told the Reuters Middle East Investment Summit that Kingdom Hotel had already acquired three hotels this year in Vietnam, the Philippines and Malaysia, with three more Asian purchases expected this year.
He said Kingdom Hotel had spent $360 million on the first three acquisitions, but declined to comment on expenditure for the others.
For 2008, he said most of the hotels targeted for potential purchases would also be in Asia.
"Our pipeline continues to be strong. We are attracted to attractive returns -- we believe that in the short term attractive returns are achievable in Asia," Zok said.
The company would not look at any project with a return of less than 10 percent per annum, he added. Continued...
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