Kingdom Hotel Investments Announces its First Investment in Asia

Kingdom Hotel Investments ("KHI"), the leading hotel and resort investment company, chaired by HRH Prince Alwaleed Bin Talal, is pleased to announce it has signed a contract to acquire the Karon Beach Hotel Phuket (currently managed by Crowne Plaza) from LaSalle Investment Management for an undisclosed sum. Details of the acquisition remain confidential pending final completion

The Resort opened in 1984 as the Karon Villa Resort and was acquired by LaSalle Investment Management in December 2003. The resort was closed during 2004 and most of 2005 and was subject to a significant refurbishment program following which, the resort was re-opened in August 2005. It is now poised to benefit from the recovery of tourist arrivals and room rates in the region as well as the repositioning with the Movenpick Brand.

The hotel is located on the West Coast of Phuket, in the heart of the Karon Beach resort area, one of Thailand's most popular beach resort destinations. The resort is spread across a lush and exceptionally well landscaped site of 82,688 sqm on Karon Beach. It comprises 352 rooms (including 186 villa-suites with private plunge pools) as well as 30 two-bedroom apartments to be sold leasehold and managed by the hotel. The hotel also holds the second largest ballroom in Phuket, which will help drive year round occupancy by adding bookings from the convention market.

This acquisition, with its large number of suites represents a unique offer in the hotel market and will enable the hotel to achieve higher average rates versus competitors. KHI plans for the new Movenpick hotel include raising additional debt and completing the sale of the 30 apartments (Ancillary real estate) within a period of two years.

HRH Prince Alwaleed Bin Talal, Chairman of KHI said: "This is a rare opportunity to purchase a fully refurbished hotel in a pristine site on Phuket's most popular West Coast. The hotel will benefit from the recovery of tourist arrivals to the region, and through Movenpick will capture increasing levels of European demand."

Sarmad Zok, Chief Executive Officer of KHI, said: "We are delighted by the addition of The Hotel in Phuket to our portfolio, which represents continued global diversification into the world's Emerging Markets. This existing hotel is the first of many investment opportunities for KHI in Asia since the opening of KHI's Asian offices in Singapore earlier on this year."

Andrew Heithersay, National Director of LaSalle Investment Management, said: "We have achieved our investment objective on behalf of our LaSalle Asia Recovery Fund and wish Kingdom Hotel Investments every success in their future endeavours at this beautiful resort."

Notes to Editors

About Kingdom Hotel Investments:

KHI, headquartered in Dubai, UAE, is a leading hotel and resort acquisition and development company focused on the first class and luxury market segments in international high growth markets such as the Middle East, Asia, Africa, emerging markets and Europe. The Company has ownership interests in 28 properties in 14 countries including 17 operational hotels and resorts (3,618

About Crowne Plaza Karon Beach Phuket:

The Crowne Plaza Karon Beach Phuket resort, opened in 1984 as the Karon

The resort measures 82,688m2, which includes 352 rooms (166 in a 5-storey tower and 186 villa-type rooms with private plunge pools). Other features include a large Spa, three swimming pools and a health club. 30 two-bedroom apartments (120m2), with dedicated gardens and a swimming pool are also included in the site. These are to be sold subject to a rental pool management programme.

About LaSalle Investment Management:

LaSalle Investment Management is a major force in the world's real estate capital markets with $30 billion of assets under management invested in private real estate, both separate accounts and funds, and publicly listed real estate securities. Our 550 employees are located in 24 offices across North America, Europe and Asia Pacific. We deliver innovative, customised investment

LaSalle is a wholly owned, but operationally independent, division of Jones Lang LaSalle Inc., one of the world's leading real estate service providers. Jones Lang LaSalle is a publicly held, New York Stock Exchange listed company (ticker: JLL).

Enquiries

Kingdom Hotel Investments

c/o Brunswick

Kate Holgate/Sophie Robinson

Tel: +44-207-404-5959

LaSalle Investment Management

Andrew Heithersay

Tel: +65-6533-6116

SOURCE Kingdom Hotel Investments

--Distributed by AsiaNet ( www.asianetnews.net )--

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