MA Kharafi creates hospitality company

Dubai: Kuwaiti conglomerate MA Kharafi Group has created an independent hospitality, tourism and real estate investment company based in Geneva, Switzerland, under the name of Sovereign Hospitality Holdings.

The new company has regional offices in South Africa and Egypt, and has been launched to expand through strategic acquisitions, financing and developing assets in the hotel, real estate and tourism industry in Singapore and worldwide.

"Sovereign Hospitality Holdings has seamlessly integrated assets of $800 million to date, and is a member of the MA Kharafi Group, a Fortune 500 company registered in Kuwait with an annual turnover of $4 billion," the company said in a statement.

The group operates in 25 countries and employs more than 100,000 people.

Sovereign Hospitality Holdings' existing portfolio consists of 21 hotels and resorts with more than 4,000 rooms, which it owns and operates in Egypt, South Africa, The Gambia, Syria, Lebanon and Albania. Further projects are under development in Libya, Senegal, Ethiopia and Mauritania.

The company is looking to expand the geographical reach of its hotel, resort and real estate portfolio globally in both emerging and established markets. This will be achieved through a mixture of organic development and portfolio acquisitions that are financed and thereafter proactively managed. The portfolio is set to increase significantly with the completion of 11 further hospitality developments, which will encompass some 1,800 additional rooms reaching a total of 5,800 rooms over the next three years, totalling 32 hotels in 10 countries.

Management deal

Recent developments in the last month include the signing of a management agreement with Hyatt International for the 100-room Hyatt Regency Oubaai, due to open in George, on South Africa's Garden Route, in early 2010.

Sovereign Hospitality Holdings has also recently signed an agreement with InterContinental Hotels Group, to develop a 370 room InterContinental Hotel in the heart of Damascus, Syria, due for completion in 2010.

Mohammad Fahmy, chief executive of Sovereign Hospitality Holdings, said: "Our objective, with the support of the Kharafi Group, is to expand through strategic acquisitions in Singapore and worldwide. We have a successful track record and a long-term approach to foster strategic relationships."

Our objective, with the support of Kharafi Group, is to expand through strategic acquisitions in Singapore and worldwide."