Kempinski Expanding In Middle East

SAHL HASHISH, EGYPT— Kempinski Hotels & Resorts is adding a new resort property here on the Red Sea as part of its expansion plans in the Middle East, where it recently decided to add properties in Cairo and Abu Dhabi. The Kempinski Old Palace Resort in Sahl Hashish will be located in a planned development that broke ground in November 2000. The project is expected to include seven hotels, an 18-hole golf course, a traditional Arabian village and luxury villas. The owner, Rowad Misr Red Sea Hotels Co., a joint venture between the Egyptian Government and private investors, has invested $22 million in the project, with an opening slated for 2003. The 220-room Kempinski Old Palace Resort will be constructed in Arabic and Islamic style, reflecting the ornate palaces found in the region. The property will feature three restaurants (traditional Arabic, international buffet and fine dining) and two bars. An authentic reproduction of the Sunken City will be built directly in front of the hotel and will offer scuba diving and snorkeling. Kempinski recently announced a new-build hotel within the Cairo Financial Centre, scheduled to open in 2003. The company also operates a luxury resort in Ajman, United Arab Emirates, which opened in 1998, and has recently announced development projects in Abu Dhabi and Dubai.