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 As part of our growth strategy, we acquire and structure greenfield developments, partially completed developments or reposition existing assets through renovation or capacity expansion. We currently have four new hotel developments as well as two ongoing renovation projects and two capacity expansion projects with a total development budget of about 587 million, with our share at $504 million. Our development business involves unique risk reward characteristics and entails an underwriting of project valuation and risk that is based on market-specific and property-specific factors. This includes expected demand and supply, project use and construction risk. Most of our development projects are focused on single hotel projects, encompassing ancillary real estate for lease or sale that benefits from hotel branding and positioning. Our underwriting discipline and objectives rely on underlying hotel property as the primary driver of value with ancillary real estate acting as a catalyst to core property returns. Our development activities also include pre-sales or pre-leases of ancillary real estate, typically as a prelude to commencement of construction. Our operating acquisitions and developments are subject to a rigorous and structured underwriting process, designed to manage risks, maximise flexibility, tax options, define governance rights and define an asset exit strategy. Transaction structures, typically multi-tiered and tax-optimised, are devised to allow us to achieve significant direct or indirect control for minimal investment. Return to top ›  Copyright © Kingdom Hotel Investments |
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