Kor Sells Stake to UAE Fund

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Kor Hotel Group, which operates about a dozen hotels worldwide, has sold a 50 percent stake to the investment arm of Abu Dhabi government to speed the company’s expansion into foreign markets.

The hotel group, a unit of Los Angeles-based Kor Group, sold a 50 percent stake in itself to the Mubadala Development Co. The strategic partnership plans to focus on taking the company’s Viceroy and Tides brand s into Europe, Asia and the Middle East.

Kor plans to focus on managing either Mubadala-owned properties or acting as a manager for properties not owned by Mubadala. It does not plan to build or own the hotels.

Four properties in the Middle East are currently under development, including hotels in Abu Dhabi, Dubai and Oman. Kor is also setting up regional headquarters in Abu Dhabi.

Kor Group Chief Executive Brad Korzen decline to say how much Mubadala paid, though he called the purchase price “meaningful.”

Last year, Mubadala invested in real estate development firm Related Cos., which is working on Los Angeles’ Grand Avenue project. Mubadala also has a joint agreement with MGM Mirage Inc. to build a $3 billion resort in Abu Dhabi that would not include gambling.

Locally, Kor properties include Viceroys in Santa Monica and Palm Springs, and an Avalon Hotel and Maison 140 in Beverly Hills.

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