Kingdom Hotel Investments has announced the acquisition of the Raffles Grand Hotel d'Angkor in Siem Reap, and the Raffles Hotel Le Royal in Phnom Penh - for a total consideration of approximately US$35 million.

These acquisitions are KHI's first in Cambodia and reflect the Group's investment and diversification strategy in high growth emerging markets.

The Raffles Hotel Le Royal opened in 1929 and is located in the heart of Phnom Penh, the commercial, political and cultural hub of Cambodia. This 170-room French-colonial style hotel is situated in a prime location on 18,000 square metres of leasehold land. It has excellent access to the international airport and city attractions such as the Royal Palace and National Museum.

The Raffles Grand Hotel d'Angkor is the leading hotel in the northern resort city of Siem Reap and has been awarded many international accolades. Considered as a national landmark, the 125-room French-colonial style hotel opened in 1932. It is located in 60,000 square metres of leasehold landscaped grounds, just 8 kilometres away from the world-famous temples of Angkor Wat, a UNESCO world heritage site.

These transactions further expand KHI's portfolio in Asia to eight properties in six countries, now including the rapidly growing Cambodian hotel market. Over the last eight years, according to the WTTC tourist arrivals have increased at an impressive 19.1% Compound Annual Growth Rate into Cambodia.

Both hotels will continue to be managed by Raffles Hotels & Resorts. HRH Prince Alwaleed Bin Talal, Chairman of KHI, said:

"Cambodia is an exciting new market for KHI. Demand for hotel accommodation in the region has grown significantly in recent years and Cambodia has benefited from increasing tourism and interest in the cultural heritage and diversity of the region."

Sarmad Zok, Chief Executive Officer of KHI, said:

"We are delighted to have acquired two established hotels in one of Asia's fastest growing tourist markets. Both are in prime locations in Cambodia, which according to the WTTC ranked (in 2006) the 11th highest in the world for demand growth expectations. KHI is very well positioned to drive shareholder value from this growth."