Half of Kor Hotel group bought by Abu Dhabi investment arm
Fifty percent stake in Los Angeles-based Kor Hotel Group has been bought by Mubadala Development Co., the Abu-Dhabi’s most active, sate investment vehicle. The news came from the corporation itself on Tuesday and the aim behind this purchase is its will to penetrate further into the global hospitality industry.
This investment is basically a whole new effort, being made on the part of the oil-rich United Arab Emirates capital and its neighbor Dubai to join hands with well known hotels brands, in order to widen their domestic tourist industry and also to find new sources of income abroad.
Mubadala and Kor reported regarding this, “The agreement will lead to aggressive global expansion of Kor's Tides and Viceroy Hotel brands, and boost the hotel operator's presence in the Middle East, North Africa and Asia.”
The financial terms of the deal were not disclosed by the companies.
Richard Mintz, Mubadala spokesman said, “It would be premature to say which international locations the companies were targeting, although the deal includes plans for business and resort developments in Abu Dhabi by 2012.”
Mintz further added, “One site under consideration in the capital is Suwa Island, which Mubadala is developing as a central business district.”
In the past, Mubadala has acquired stakes in vast number of companies that include sports car maker Ferrari S.p.A. and private equity firm Carlyle Group. However, the Kor Deal is its first direct investment in the hospitality industry.
Other hotel partnerships have actively been pursued by the company and state-owned firms in Dubai. Last year a plan to construct a US$3 billion non-gambling resort in Abu Dhabi was announced by Mubadala and casino operator MGM Mirage Inc.
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