May 15, 2012
Carlson Rezidor Hotel Group and Magellan Development Group together have entered into a strategic partnership with Seldar Holdings, the North American investment and business development arm of Al Rayyan Tourism and Investment (”ARTIC”). This partnership will own the Radisson Blu Aqua Hotel, Chicago, which opened on November 1, 2011.
Carlson Rezidor Hotel Group will retain the long-term management contract for the hotel. As a result, the new ownership structure will not affect hotel operations or the guest experience in any way.
Carlson Rezidor Hotel Group will continue to invest capital in future investment opportunities supporting the company's ongoing Ambition 2015 growth strategy, which primarily targets flagship properties in key markets around the world.
A wholly-owned Al Faisal Holding Company LLC subsidiary, ARTIC is engaged in real estate development, acquisition and leasing with primary focus on the hospitality sector and hospitality-related services both in Qatar and overseas. In line with Al Faisal Holding's strategy for the growth of its domestic and international hospitality business, this new partnership now brings its current hotel portfolio to over 14 properties in prime locations across Qatar, Egypt, London and now Chicago.
“We are delighted to forge this partnership for the acquisition of the Radisson Blu Aqua Hotel in Chicago. This unique landmark hotel with its one-of-a-kind architectural quality and attractive setting reflects our clear investment focus on high quality assets in prime city locations as we continue to grow the business both locally and internationally. I look forward to the further expansion of our hotel portfolio across Europe, MENA and now North America,” said H.E. Sheikh Faisal Bin Qassim Al Thani, chairman, Al Faisal Holding.
Thorsten Kirschke, president, Americas, Carlson Rezidor Hotel Group said of the sale, “We are pleased to complete this sale with such an esteemed partner. We look forward to continuing to grow our relationship with Al Faisal Holding and Magellan Development Group and to emulating the success of the Radisson Blu Aqua Hotel, Chicago with many opportunities to come.
Since its inception in 1996, Magellan Development Group has successfully financed and developed more than USD 2.5 billion of residential, mixed-use, and commercial projects and has received over 70 national and international awards for excellence. “Magellan Development would like to welcome Al Faisal Holdings to North America and Chicago. We are proud to be aligned with Al Faisal Holdings and Carlson Rezidor Hotel Group with Radisson Blu Aqua Hotel. This partnership supports Magellan's goal of creating strategic alliances with best in class partners in order to expand its growing development portfolio,” said David Carlins, president, Magellan Development Group. .
The terms of the sale and management contract, including extension agreements, are not disclosed.