Action Hotels pockets $2.2m profit on Kuwait land sale

Action Hotels has completed the sale of its undeveloped land at the Sharq site in Kuwait, pocking a profit of around $2.2m based on the original purchase price in June 2014.

The company agreed the sale to Action Real Estate Company for a cash consideration of approximately $14.6m, which it has received.

The last valuation of the land by Hamptons International put it at $13.6m.

Action said the proceeds will be reinvested and help fund the company’s growing pipeline of hotels in the Middle East and Australia, including the recently announced development in Melbourne.

Chief executive officer Alain Debare said: “We are pleased to have completed the sale of the investment land in Sharq for $14.6m. This transaction is a good example of Action Hotels' ability to best utilise its assets to support its overall growth strategy."

At 0930 GMT, the shares were flat at 54p.