'There is an active deal pipeline in the East African market and we are actively looking at properties elsewhere in the Indian Ocean,' says Sarmad Zok, chief executive officer of KHI. 'There are a number of hotels that we think would complement our existing portfolio.' KHI is in advanced negotiations for investments in Mauritius, South Africa and the Seychelles.

The expansion is mirrored by KHI's strategy in Europe, where the company has set up a joint venture with Bank of Scotland Corporateand Canada's Fairmont Hotels & Resortsto target the luxury hotel market. Following the January acquisition of the Savoy in London and the Monte Carlo Grand Hotel in Monaco, the joint venture, provisionally called FHR European Ventures, is understood to be negotiating a possible acquisition in France (MEED 28:1:04).