UAE firm takes 50 percent stake in top US hotel groupSeptember 24th, 2008 - 11:01 am ICT by IANS
Dubai, Sep 24 (IANS) The United Arab Emirates’ (UAE) leading investment company Mubadala has acquired a 50 percent stake in the Kor Hotel Group of the US to develop that group’s hotel brands in Asia, the Middle East and Africa.In a statement, Mubadala, the global investment vehicle of the government of the emirate of Abu Dhabi, announced that following the agreement with Kor Hotels, the joint venture would “focus on aggressive global expansion of the Tides and Viceroy brands in key gateway cities and top resort destinations”.
“Kor’s Viceroy and Tides brands have a reputation for fine luxury, avant-garde design, and intuitive service which align perfectly with our vision,” Waleed Al Mokarrab Al Muhairi, Mubadala’s chief operating officer, said in the statement.
“This (partnership) contributes to Mubadala’s real estate and hospitality strategy that is supporting the economic diversification efforts that are under way in Abu Dhabi,” he added.
This is Mubadala’s first investment in the hospitality sector.
Apart from hospitality, Mubadala has invested in the energy, telecommunication, aerospace, automotives, healthcare, real estate and ship building sectors.
Its real estate and hospitality portfolio includes joint venture partnerships with leading US-based real estate firm The John Buck Company, and southeast Asia’s largest real estate company, Singapore-based CapitaLand.
“Mubadala’s relationships with world-class developers and international capital partners, coupled with Kor’s expertise in hotel development, design and management, will facilitate our expansion efforts,” Brad Korzen, chief executive of the California-based Kor Hotel Group, said.
Established in 1989, the Kor Group is a privately held real estate investment firm comprising integrated development, design and construction, real estate sales and marketing, and hotel management divisions.
Its current portfolio includes 20 hotel properties in operation.