6th Aug 2014 10:13
(An item published 1132 BST Tuesday misstated that Action Hotel will manage the hotel. The correct version follows.)
LONDON (Alliance News) - Action Hotels PLC Tuesday said it has signed a memorandum of understanding with hotel operator Accor Group for the management of a 160 room freehold hotel in Kuwait City.
The hotel developer said the hotel will be four stars and branded as a Novotel, which is a mid-scale hotel brand within the Accor Group portfolio.
Construction of the hotel is scheduled to start in the first-half of 2015, and it is expected to be completed in 2017.
The development of the freehold hotel is currently expected to cost approximately USD29 million, an average of USD181,000 per room, in addition to the USD12.3 million already paid to secure the plot of land.
Action Hotel said it is considering various funding options which are likely to include locally sourced long-term bank debt secured on the hotel and other Action Hotel debt-free freeholds.
The company said its existing two Accor hotels in Kuwait, ibis Salmiya and ibis Sharq, continue to trade strongly with occupancy figures of 84% and 88%, respectively, for the six months to end-June.
Action Hotels shares were quoted down 0.7% at 69.00 pence Wednesday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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