Action Hotels strikes new deal for Ras Al Khaimah hotel
[ Images: Copyright © 2015 Giuseppe Digno Photography ]
The hotel is due to open in early 2016 and, according to the company, its shareholders are in a better position to benefit from the property.
Action Hotels (LON:AHCG) has told investors it has agreed to a joint venture in Ras Al Khaimah, UAE, where it agreed to acquire a leasehold interest in new hotel back in October last year.
The AIM quoted company said the new partnership with Action Group Holdings, to acquire the building jointly on a freehold basis from Action Real Estate Company, will add greater value to its shareholders.
It was previously envisaged, under the October 2014 deal, that the AIM company would contribute US$4.8mln to refurbish the building and convert the interior of the building into a hotel.
This new arrangement will effectively mean that the company and its shareholders will see any benefit from changes to the building’s value as a result of the investments.
Action Hotels explained that the new joint venture would acquire the land and building for US$6.5mln, and the total project costs would be around US$6.3mln.
It represents an incremental cost to Action Hotels of around US$1.5mln, the company said, and it is anticipated that those costs will be met from existing cash resources. [ Click to Read Full Article ]
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