Billionaire Signs $100 Million Hotel Deal

September 20, 1999
RIYADH, Saudi Arabia (Reuters) - Saudi billionaire Prince Alwaleed bin Talal has signed a $100 million preliminary deal with an Egyptian firm to build two hotels on Egypt's Red Sea coast, the prince's Kingdom Holding Co. said Saturday.

"Prince Alwaleed bin Talal...signed preliminary agreements with Dr. Fareed Saad, Chairman of Soma Bay Development Co. for the establishment, development and management of a Four Seasons and a Movenpick hotels In Soma Bay, Egypt," the company said in a statement.

It said construction of the two hotels was expected to begin by the middle of next year. Soma Bay, which has an 18-hole golf course, is an upmarket tourist destination near Hurghada.

The statement did not give a breakdown of the prince's stake in the hotels. The prince has an international portfolio worth billions of dollars with investments in the Middle East, Europe and the United States.

He holds 26.5 percent stake in Four Seasons and 30 percent interest in Movenpick Hotels and Resorts.