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Former Raffles Phang Nga Owner Kingdom Hotels Write Down

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Posted: 15 Mar 2009 | 3:00 pm

The London listed hospitality arm of Saudi Royal Prince Alwaleed bin Talal's Kingdom Hotel Investments has announced in it's preliminary 2008 results a write down of US$2.9 million in soft development costs. According to the Annual Report listed on the company's web site (www.kingdomhotels.com) the Phang Nga development project was sold for US$23.9 million and it recognized a loss on disposal of US$3.5 million. The sale was reportedly to a Bangkok based private equity firm who is rumored to be moving ahead with the project.

The Saudi Prince previously made headline news on the island with his acquisition of the Crowne Plaza Karon which was subsequently rebranded Moevenpick Resort and Spa Karon Beach in a high profile transaction a few years ago. Despite his continuing fortune rising in petrodollars, the financial downturn at Citigroup where he is a major shareholder has impacted a diverse financial portfolio.

Kingdom when entering the Asian market focused on a number of mixed use hotel and residential developments, with Raffles Danang Vietnam recently put on hold and an expansion of the Four Seasons Langkawai also cancelled. Another Asian investment is proceeding in Manila though back of a successful launch for the Raffles Residence Manila located in the country's financial district of Makati.

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I am one of the homeowners on Natai Beach. We met several years back when I was first researching the area.
Any idea of the status of Richard Li's investment in Thai Muang? Is the redeveloment going forward and will the golf course ever reoPen?

Bill Barnett responds:
I have spoken in Phuket to the business development manager of one of the Thai companies that acquired the land. The project is in its final stage of master planning for a mixed resort/residential layout. A par 72 golf course will be part of the project, although said to be quite different to and more challenging than the previous one. Adrian McCarroll of Original Vision is the master planner and lead architect. Supported by a number of expert consultants, the planning is moving ahead and is targeting submission to the authorities within this year

Michael M., 24 Mar 2009 | 4:32 pm

Great blog Bill. I have heard that Evolution is taking on this project now. The Group that tried to developed the failed Phoenix Condo project on one of the golf courses in Pattaya. Does anyone know the background of this development group besides the Phoenix project? Are they for real? I wonder if they have gotten funding for this project yet?

Bill Barnett responds:
We spoke to Evolution and please find their comments below - "A Real Estate Private Equity Fund advised by Evolution Capital PCL acquired the site in Q4 2008.More details on the nature of the development will be announced in due course. " Hope this clarifies things, as you may be aware Evolution has some significant financial backing so this looks to be moving foward which is good news for the market.

Bangkokwatcher, 16 Mar 2009 | 4:54 pm

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