On 23 December, Island Hotels Group Holdings plc announced that following the award of a public tender issued by the Government of Malta in March 2009, the Group has now completed the acquisition of the perpetual emphytheusis over a land measuring approximately 83,000 square metres (located in Ghajn Tuffieha adjacent to the Radisson Blu Golden Sands Resort and Spa) and the shares in Hal Ferh Company Limited from the Government of Malta and Air Malta plc. The total consideration of this acquisition is of circa €12 million.
The Group intends to develop the site through its newly established affiliate, The Heavenly Collection Limited, which is equally owned with Mayfair (the company with which IHG also owns 50% of Golden Sands Resort Limited). IHG announced that it will be adopting a business model similar to the one used at the Radisson Golden Sands Resort & Spa for this new site.
In the coming months the Group will be drawing up plans and subsequently submitting them to MEPA for approval. IHG expects to commence development and construction works by early 2011. Once completed, the additional room stock, complemented by the current infrastructure of the Radisson Blu Golden Sands Resort & Spa, should have a long-term positive effect on the overall profitability and financial performance of the Group.