Financial News

Financial News

BACKGROUND

Zara Investment (Holding) Company Ltd. ("Zara" or "the Company") was established om May 10, 1994 at the initiative of a number of independent investors, banks, and investment houses as a public sharholding company to manage its subsidiaries operating in the Jordanian tourism sector. Upon its establishment, Zara obtained majority ownership and management of several promising tourism companies and projects in Jordan, and committed itself to developing a network of renowned first-class tourist establishments extending across the country.
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Zara is Jordan's leading tourism investment company with a total equity of around JD 85.3 million, and total assets of over JD 202 million, as of December 31,1999. Zara Investment (Holding) Company owns and operates up-market tourism and business-travel focused hotels and accommodations in high potential areas throughout Jordan. It is currently the most significant owner and developer of hotels and business facilities in Jordan. Through its majority owned subsidiaries, Zara has engaged in a number of tourism and hotel projects either through obtaining majority ownership and control of certain establishments, or through direct investments. The extraordinary general assembly approved in its meeting held on November 17, 1999 the increase of the Comapany's authorized capital to 125,000,000 shares, each having a par value of JD1.

MAJORITY OWNED SUBSIDIARY
(AS OF JUNE 30,1999)

Jordan Hotels and Tourism Company.........................
Levant Hotels and Tourism Company.........................
Amman Tourism Invesment comapny.........................
Al Wadi Hotels and Tourism comapny.......................
Rum Hotels and Tourism Company............................
Oasis Hotels Company..............................................
NationalHotels and Tourism Comapny.......................
Jordan Hotel Supplies Trading Company...................
Zara Consulting & Project Management Company.....
South Coast Real Estate Development Company......
Red Sea Hotel Comapny...........................................
Areen Zara Company................................................
South Coast Hotels Company....................................
Jordan Himeh Mineral Company.................................
Zara Agricultural Company.......................................
Zara Suites Company...............................................

CAPITAL
(JD)

10,000,000* 5,000,000 35,000,000 35,000,000
5,00,00
400,00
15,000,000
300,000
100,000
3,000,000
10,000,000
100,000
500,000
347,607
50,000
500,000

EFFECTIVE
OWNERSHIP
(%)
51.6
95
91.7
59.8
75
75
96.4
51.5
94.2
63.2
100
51
89.6
57.7
52
50.8

*As of December 31,1999

Zara Investment (Holding) Company's long-term strategy is to own a portfolio of high quality hotels and resorts at every major tourist destination in Jordan in order to serve the growing number of travelers seeking appropriate accommodations in multiple Jordanian destinations. Zara currently has strong market positions in Amman, Petra, and the Dead Sea. The company intends to increase its market position in these areas and expand to have a foothold in Aqaba and northern parts of Jordan. This expansion has been realised with the recently opened Movenpick Resort Aqaba and the Movenpick Resort Himmeh due for completion in Spring 2000. Zara Investment (Holding) Company has already developed internationally recognized five-star hotels in operation throughout Jordan with a total room capacity of 1,421.

HOTEL NAME

InterContinental Jordan
Petra Movenpick
Grand Hyatt Amman
Dead Sea Movenpick
Aqaba Movenpick

Total

LOCATION

Amman
Petra
Amman
Dead Sea
Aqaba

CLASS

*****
*****
*****
*****
*****

ROOM

478
183
321
231
270

1,483

PARENT COMPANY

Jordan Hotels & Tourism
Levant Hotels & Tourism
Amman Tourism Investment National Hotels & Tourism
Red Sea Hotels

START OFOPERATION

1963
1996
1999
1999
2000

With the purpose of providing these tourist destinations with premium facilities at low economic cost, the Company has invested in complementary and support activities. As part of its strategy, Zara Investment has actively pursued alliances with tour operators and other tourism related entities. Such transactions have involved direct equity investments and have resulted in a number of strong operational synergies.

MINORITY INVESTMENTS OF ZARA INVESTMENT (HOLDING) COMPANY

COMPANY

Jerusalem Tourism Investment Company..................
Jordan Express Tourist Travel Co. (JETT).................
Jordan Hotels and Tourism Education Company.......
Petra Tourism Transport Company............................
Palestine Touristic Investment Company...................
Arab Aqua-Culture Company.....................................
Middle East Tourism Options......................................

Total

*Subscribed to 1 million shares.

NUMBER OFSHARES

8,520
503,067
60,000
600,930
500,000*
30,000
70,290

1,772,807

% OWNERSHIP

0.24
3.37
6.0
20.0
20.0
30.0
50.0

ACTIVITY

Tourism and Hotels
Bus Transport Tourism
Education
Bus Transport
Tourism and Hotels
Fish Farming
Travel Agency