UAE group to divest stakes

A U.A.E. business group said yesterday it is ready to sell a controlling stake in four major hotels in the gulf states, the first such private sector initiative in the country's hotel sector.

Al-Fahim group sources said it would invite national private investors to buy between 60 and 20% of its U.A.E. Crown plaza hotels, worth nearly 1.4 billion dirhams ($361 million).

"A publicly-held company will be created to manage the hotels after the sale," the group sources added.

"It is the first initiative to be taken by the private sector in the UAE" hotel sector, he said. "I strongly support the transfer of large family firms into publicly-held companies to reduce risks and create investment opportunities for citizens."