News for the Hospitality Executive
|PARSIPPANY, N.J. (Dec. 11, 2006) – Wyndham Hotel Group
and its joint-venture partner, Corinthia Hotels International, today announced
plans by Istithmar Hotels of Dubai to invest 178 million Euros in Corinthia’s
principal owner, International Hotel Investments, to acquire and build
upscale hotels in Europe and globally.
The investment, which would increase International Hotel Investments’ issued share capital to 500 million Euros, is subject to various statutory and regulatory approvals and it is expected to close by March 2007.
Wyndham Hotel Group, a subsidiary of Wyndham Worldwide Corporation (NYSE: WYN), of Parsippany, N.J., recently gained a 30 percent stake in Corinthia’s management company, CHI Limited, as part of a joint venture to provide management services for Wyndham-franchised hotels in Europe, the Middle East and Africa. Fifteen Corinthia-owned hotels in that region will be rebranded as Ramada Plaza, Wyndham hotels and a new tier, Wyndham Grand Hotels, with which Corinthia-branded hotels are being affiliated.
“By enabling Corinthia to expand its portfolio, this investment will accelerate the development of our hotel brands throughout Europe and neighboring regions,” said Steven A. Rudnitsky, Wyndham Hotel Group president and chief executive officer. “Istithmar Hotels’ investment is a powerful vote of confidence in Wyndham Hotel Group’s joint venture with Corinthia Hotels.”
The Istithmar deal was announced this week in Malta by Alfred Pisani, IHI chairman, and Khaled Al Kamda, Istithmar’s vice chairman. Participating were Rudnitsky; Joe Sita, Istithmar Hotels chief executive officer; Simon Naudi, IHI director of business development; Tony Potter, Corinthia Hotels chief executive officer; and Karmenu Vella, Corinthia Hotels chairman.
“This is a momentous occasion for a Maltese company, welcoming Istithmar Hotels as our partner with a substantial shareholding interest in IHI,” Pisani said. “Together, we will grow this company into a major hotel company.”
IHI was founded in March 2000 by the Corinthia Group and since has acquired and developed five-star hotels in Malta, St. Petersburg, Budapest and Lisbon, to which are being added hotels in Tripoli and Prague.
Istithmar Hotels is a subsidiary of Istithmar, a leading private equity and alternative investment company based in Dubai, the United Arab Emirates. Istithmar is part of the Dubai World group, which is wholly owned by the Government of Dubai.
As one of the world’s largest hospitality companies, Wyndham Worldwide offers individual consumers and business-to-business customers a broad suite of hospitality products and services across various accommodation alternatives and price ranges through its premier portfolio of world-renowned brands. Wyndham Hotel Group encompasses more than 6,400 franchised hotels and approximately 534,000 hotel rooms worldwide.
|Also See:||Dubai Investment House, Istithmar, Acquires the 280 room W Hotel Union Square in New York for US$285 million / October 2006|
|Istithmar Hotels, based in the United Arab Emirates, Signs Master Franchise Agreement with easyHotel Limited to Open a Chain of Budget Hotels Across the Middle East / May 2006|
|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|
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