Kingdom Holding Company (KHC), chaired by Prince Alwaleed Bin Talal said last Monday that a series of agreements were clinched between Fairmont Raffles Holdings International (FRHI) and Voyager Partners Limited (Voyager) and QD Hotel & Property Investment Limited (QDHP). Voyager is a private investment entity based in the Cayman Islands. QDHP is a wholly-owned subsidiary of Qatari Diar, the principal real estate investment entity of the Qatar Investment Authority. Alwaleed said “I welcome the strategic alliance with Qatari Diar.” Under the agreements, Voyager has acquired for a combination of cash and other consideration a 40 percent shareholding in FRHI. In addition, QDHP has undertaken to provide FRHI with a number of future management contracts for hotels that will be branded either Fairmont, Raffles or Swissotel. In addition, QDHP will work closely with its various stakeholders and FRHI on branded hotel management opportunities in the future. As a result of these agreements, Kingdom Holding Company will become the second largest shareholder in FRHI, and Colony Capital will become Fairmont's third largest shareholder. Commenting on the transaction, Alwaleed said “I am delighted to welcome both Voyager and QDHP as our new and strategic partners in FRHI. The selection of FRHI as their flagship hotel entity, and the significant cash investment made, underlines the strength of FRHI's brands and management capabilities and provides assurance that FRHI's growth on a global basis will be amongst the highest in the industry.”
