Hotel Online
News for the Hospitality Executive

 
advertisement



Kerzner International Holdings Limited Completes Restructuring to Improve its
Capital Structure and Position it for Growth as a Global Management Company

Brookfield Asset Management Fund Assumes Ownership of Bahamian Assets,
Ownership Interest in Dubai's Atlantis The Palm Sold to Istithmar World,
Kerzner to Continue Managing All of its Properties World-Wide

PARADISE ISLAND, Bahamas, April 27, 2012 -- Kerzner International Holdings Limited, through its subsidiaries (collectively, "Kerzner" or the "Company"), a leading international developer and operator of destination resorts, casinos and luxury hotels, today announced that it has concluded its comprehensive restructuring to improve its capital structure and position it for sustainable, long-term growth as a global management company. As part of the restructuring, Kerzner has completed a transaction with the lenders to its Bahamian assets, including a fund managed by Brookfield Asset Management ("Brookfield Fund"), whereby Brookfield Fund has assumed ownership of these assets. As part of the transaction, Brookfield Fund has exchanged approximately $175 million of debt for Kerzner's equity interests in the Bahamian companies. Kerzner will continue to manage Atlantis Paradise Island and One&Only Ocean Club.

In addition, Kerzner has completed its previously announced agreement with its corporate lenders to amend its operating company debt facility. In connection with its operating company restructuring, Kerzner today announced that it has completed a transaction to sell its 50% ownership interest in Atlantis The Palm to its co-owner, Istithmar World PJSC ("Istithmar") for $250 million, the proceeds of which have been used to reduce Kerzner's operating company indebtedness. Following the closing of this transaction, Kerzner will continue to manage Atlantis, The Palm pursuant to a multi-year management agreement.

The completion of the global restructuring allows Kerzner to continue focusing on its role as a management company (with significantly reduced indebtedness) under which it will continue to own the Atlantis and One&Only brand names and retain the right to develop additional resort properties under these names.

"We are pleased to have reached a successful conclusion to our comprehensive restructuring, which significantly strengthens the Company's financial profile," said Sol Kerzner, Chairman of Kerzner International. "With substantially less debt and a more flexible operating structure, Kerzner is well positioned for sustainable long-term growth as a global management company. We are committed to working together with Brookfield Fund, Istithmar and our other partners to continue blowing away our customers at all of our resorts and properties around the world. Kerzner, Brookfield Fund and Istithmar are aligned with regard to the best interests of the business moving forward including: keeping future capital expenditures and maintenance levels consistent with years past; maintaining current employment levels and investing the same level of resources into local and international marketing to support tourism in The Bahamas and Dubai."

"Today's announcement significantly accelerates our strategy of shifting from an owner and operator to a management company and allows us to focus on managing all of our resorts and properties," said Alan Leibman, Chief Executive Officer of Kerzner International. "Kerzner will remain in control of all aspects of running its properties and it will continue to operate seamlessly as it always has. We look forward to working with our business partners to provide our guests with an unparalleled experience. We can now focus our attention on growing The Atlantis and One&Only brands around the world. As always, we would like to thank our all of our employees for their hard work and continued commitment to Kerzner."

"We are thrilled to have concluded these transactions with our lenders, including Brookfield Fund," said George Markantonis, President and Managing Director, Atlantis, Paradise Island, Bahamas. "The transaction in the Bahamas is a very positive development for Kerzner and we look forward to continue investing in these regions for many years to come."

Brookfield Asset Management is a global asset manager with approximately $150 billion in assets and has an over 100-year history of owning and operating assets with a focus on real estate, infrastructure, renewable power and private equity. With decades of operating experience and over $83 billion of property assets they have developed an expertise in real estate investments that spans the globe.

Istithmar is a premier investment company with an international portfolio, including a broad group of hotels and commercial properties. Istithmar primary focus is on maximizing value and asset appreciation through a diverse portfolio.

Kerzner International has retained Kirkland & Ellis LLP as legal counsel and Blackstone as financial advisor.

Kerzner International Holdings Limited, through its subsidiaries, is a leading international developer and operator of destination resorts, casinos and luxury hotels. Kerzner's flagship brand is Atlantis, which includes Atlantis, Paradise Island, a 2,317 room ocean-themed destination resort in The Bahamas, as well as The Cove Atlantis and The Reef Atlantis in The Bahamas and Atlantis, The Palm, Dubai, a 1,500-room, water-themed resort on The Palm, overlooking the Arabian sea and mainland Dubai. Under the One&Only brand, Kerzner also manages seven of the top-rated luxury resort properties in the world, located in The Bahamas, Mexico, Mauritius, the Maldives, South Africa and Dubai. Kerzner recently announced plans to develop and operate a new One&Only resort on Tufu Bay in Sanya, Hainan, China, anticipated to begin welcoming guests in early 2014. Additionally, the Mazagan Beach Resort, a 500-room destination casino resort in Morocco, is also operated by Kerzner. For more information concerning Kerzner and its operating subsidiaries, visit kerzner.com.
.
Contact:

Jennifer Glaisek Ferguson
(212) 659-5190
Jennifer.Ferguson@Kerzner.com

 
 Receive Your Hospitality Industry Headlines via Email for Free! Subscribe Here

To Learn More About Your News Being Published on Hotel-Online Inquire Here
.
Also See: Kerzner International Appoints Jennifer Glaisek Ferguson as Senior Vice President of Global Communications and Public Relations / March 2012

Kerzner Enters into Agreement with Hainan Gezhouba Industrial Company Limited to Develop and Manage the First One&Only Resort in China; Early 2014 Opening Planned for the 180-room Resort in Sanya, Hainan, China / February 2012

Kerzner International Appoints Alan Leibman as Chief Executive Officer, Sol Kerzner to Remain as Chairman / January 2012

Kerzner International Enters into Agreement with Lenders Shifting Growth Strategy for Atlantis and One&Only Brands from Owner / Operator to Management Company; Brookfield Asset Management to Assume Kerzner’s Ownership Interests in Atlantis Paradise Island, One&Only Ocean Club and One&Only Palmilla / November 2011

Kerzner International Appoints Audrey Oswell as Chief Gaming Officer of Atlantis, Paradise Island Resort in The Bahamas / July 2011

Kerzner International Appoints Dianna Upton as Director of Sales - Africa, Middle East and Indian Ocean / June 2011

Kerzner International Appoints Paul Burke as Chief Operating Officer for Atlantis, Paradise Island Resort in The Bahamas / May 2011

Noble Investment Group Names James E. Conley, Jr. as CFO and Paul Burke as EVP of Operations / June 2006

Interstate Hotels Names Paul Burke President, Hotel Operations / March 2005

Kerzner International Renovating One&Only Ocean Club's Cresent Wing in Paradise Island, Bahama's / August 2010

Kerzner International Appoints Bruce Himelstein as Chief Marketing Officer / March 2010

One&Only The Palm, Dubai Being Developed by His Highness Sheikh Bin Saeed Al Makthoum and Sol Kerzner, of Kerzner International the Parent Company of One&Only Resorts / November 2009

Kerzner and Istithmar Agree to Expand Atlantis, the Palm, Dubai to 2,000 Rooms, Development Costs Grow from $650 million to $1.1 billion / June 2004
.


To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch

Home | Welcome | Hospitality News
| Industry Resources

Please contact Hotel.Online with your comments and suggestions.