Investment Corporation of Dubai buys stake in hotel operator Kerzner
File photo shows an avenue leading to the Atlantis hotel on the Palm Jumeirah Island in Dubai, United Arab Emirates.
The Investment Corporation of Dubai (ICD), a Dubai government conglomerate behind some of the emirate's industrial powerhouses says it has bought a "significant" stake in the Kerzner International Holdings, a hotel operator that runs the Atlantis hotel on the city's main palm-shaped island.
Investment Corporation of Dubai said Thursday last week that it bought the stake in Kerzner International Holdings from the family of founder Sol Kerzner and several institutional investors. It did not disclose the size of the stake or the purchase price.
The transaction will see ICD executive director and CEO Mohammed Al Shaibani take over as chairman of the operator from South Africa-born hotel magnate Sol Kerzner‚ who founded the company in 1994.
The value of the deal was not disclosed in a statement the ICD issued on Thursday.
Kerzner International Holdings operates globally under the One&Only and Atlantis brands — significantly in Dubai‚ with three resorts‚ along with two in the Bahamas and others in Mauritius‚ the Maldives‚ Mexico‚ South Africa and soon Australia.
Debt restructuring agreements last year saw Kerzner International Holdings handing over its Atlantis resort properties in Dubai and the Bahamas — effectively leaving it as a resort management‚ branding and development company.
State-run investment firm Istithmar World paid $250m to buy out Kerzner International Holdings‚ which had held a 50% stake in the Dubai Atlantis hotels.
Mr Shaibani said on Thursday that the Kerzner business and its brands were “synonymous with the luxury hotel industry‚ a sector which is of strategic importance to Dubai”.
Mr Kerzner said: “I am exceptionally proud of all that has been accomplished at Kerzner International. This is a significant milestone in my life after a long and happy career in the tourism industry and I wish the company well.
“I am confident that with ICD’s guidance‚ the company will fulfil on its upcoming expansions towards further growth and global reach.”
Kerzner International Holdings CEO Alan Leibman will continue to oversee the company’s expansion‚ including a new Atlantis resort in China and four One&Only resorts being developed around the world.
