Kingdom Hotel Investments (KHI) has sold part of its minority shareholding in Fairmont Raffles Holdings International for $12.6m (£6.7m) to a Canadian pension fund.
The Dubai-based hotel and resort investment company, chaired by HRH Prince Alwaleed Bin Talal, sold the stake to the Ontario Municipal Employee Retirement System (Omers) following its recent acquisition of seven Fairmont managed hotels in Canada.
Omers secured of 0.5% of KHI's shares in Fairmont Raffles. KHI will retain a 0.37 % stake in Fairmont Raffles Holdings and its representation on the board.
KHI will use proceeds from the sale for further expansion and development of the group's portfolio.
Sarmad Zok, chief executive of KHI said: "This transaction not only permits KHI to continue to maintain our strong relationship with Fairmont and retain a board seat in the company, but also allows us to realise an opportunity to monetise our investment at a favourable price and at attractive returns on our initial investment.
"The cash proceeds will allow us to continue to evaluate and pursue hotel and property developments in emerging markets to further develop our portfolio," he added.
By Emily Manson