For the year ended 31 December 2008, KHI is expected to deliver strong growth in net income before exceptional items driven by hotel performance and real estate sales. Full-year consolidated revenue is expected to grow by over 50% and KHI EBITDA is anticipated to increase by about 40% (2007: $36m). KHI Adjusted EBITDA is also expected to increase by about 40% (2007: $68m). During the year the Company added about $300m in new debt commitments in line with objectives.
As part of its portfolio rationalization strategy, KHI sold its interests in the Fairmont Zanzibar affiliate and Fairmont Palm Hotel & Residences associated development, and completed step-up acquisitions at the Fairmont Kenya and Mövenpick El Quseir hotels. The Company also actively managed its early development stage projects by shelving the Da Nang, Kampala and Langkawi hotel expansion projects and selling its development land in Phang Nga, and took appropriate income statement charges in respect of these actions.
Full-year System RevPAR, a like-for-like measure of the performance of 21 consolidated and associated hotels is expected to have increased 12% for the year (10% on a currency neutral basis), in-line with our revised guidance.
Renovation of all hotels in Kenya was completed in December as were the conversion works of the Mövenpick Bur Dubai Residence. Construction activities continued to progress at all five advanced-stage developments projects: Fairmont/Raffles Makati, Four Seasons Beirut, Four Seasons Marrakech, Mövenpick Accra, Raffles Seychelles.
In July 2008, KHI successfully launched a residential sales programme of the Fairmont Makati Hotel and Raffles Suites (Manila, Philippines) development: 110 of 220 apartments were pre-sold at significant premiums to prevailing market rates. Additionally, the 50% owned Four Seasons Resort Mauritius at Anahita opened in October and over two thirds of its 45 pre-sold residential villas were delivered or completed by December 2008.
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