MANILA – The hotel unit of Ayala Land Inc. has acquired a stake in the Fairmont Hotel and Raffles Suites and Residences projects in Makati as part of the real estate developer’s expansion of its commercial leasing business.
In a disclosure to the Philippine Stock Exchange, the property firm said its wholly-owned subsidiary AyalaLand Hotels and Resorts Corp. bought the interest of Kingdom Hotel Investments and its affiliate in the two projects for $24.11 million.
KHI is a wholly owned subsidiary of the Saudi Arabian conglomerate Kingdom Holding Co., which is chaired by HRH Alwaleed Bin Talal Bin Abdulaziz Alsaud.
The deal will add 32 Raffles Suites and 280 Fairmont Hotel rooms to ALI’s hotel portfolio.
“Furthermore, this landmark project will complement the various offerings of the Makati Central Business District and fortify its position as the country’s premier financial district,” ALI said.
The company expects the continuing sale of units in the Raffles Residences to generate immediate cash, while the operation of the hotel and serviced apartments will augment and diversify the source of recurring revenues.
The Fairmont is scheduled to begin operations in December.