Muscat: The board of directors of Oman Hotels and Tourism Co, which owns Al Falaj Hotel in Muscat, has, in principal, agreed in favour of a non-binding offer for the acquisition of Al Falaj Hotel.

A meeting of the board of directors of Oman Hotels and Tourism Co was held on Tuesday to consider the non-binding binding offer received for the acquisition of the assets and business of Al Falaj Hotel.

“After due deliberation, the board of directors in principle agreed in favour of the non-binding offer for the 100 per cent ownership of Al Falaj Hotel for a consideration of RO14mn.

This in principle acceptance is subject to successful completion of requisite legal and financial due diligence by the prospective buyer culminating in binding offer and on agreement of an appropriate transaction structure,” said Mohamed Abdulla al Khonji, chairman of Oman Hotels and Tourism Co in a filing to Muscat Securities Market.The proposed sale of the asset is subject to the further approval of the board and shareholders of the company.

“Further disclosure concerning this matter will be made as and when there are developments to report,” Khonji added.

Oman Hotels and Tourism Co, however, did not disclose the name of the prospective buyer of Al Falaj Hotel.

Oman Hotels and Tourism Co owns and operates a prestigious portfolio of hotels in the sultanate, which includes: Al Falaj Hotel and Ruwi Hotel in Muscat, Al Wadi Hotel in Sohar, Sur Plaza Hotel in Sur and the luxury Desert Nights Camp in Sharqiyah Sands. The company’s portfolio is under the management of Aitken Spence Hotels, a leading hospitality management company headquartered in Sri Lanka and with a large portfolio of hotels and resorts in Sri Lanka, India and the Maldives.