KHI Builds Raffles In Phang Nga, Next To Phuket, Thailand

Kingdom Hotel Investments will develop the Raffles Phang Nga Resort and Residences at an estimated cost of US$115 million. Land was recently acquired through a joint venture company, 80% owned by KHI and 20% by European Hotels Corporation. The proposed Raffles Phang Nga Resort and Residences will start operations in 2009, with 150 rooms and 25 luxury residential villas located on 240,000 square metres of prime freehold land. It is anticipated that standard rooms will contain a gross area in excess of 100 square metres per unit. The built up areas of the villas will be approximately 500 square metres per villa. The site is populated with mature palm trees and overlooks the Andaman Sea. It includes an 80,000-square-metre fresh water lake and benefits from approximately 400 metres of direct beachfront. The proposed resort is located 35 minutes drive from Phuket International Airport. Residential villas will be offered for sale during the development period on a long-term leasehold basis. KHI is targeting to invest US$12 million for an 80% ownership stake in the proposed development. KHI will seek debt financing to fund approximately 50% of the total project. The sale of the villas during the development period will contribute to the funding of the project.

Source: HVS