Ayala Land Inc. and Kingdom Hotel Investments of Saudi-Arabia have agreed to develop a P7.5 billion ($153 million) hotel complex at the present site of a bus station at the corner of Makati and Arnaiz Avenues.

Kingdom Hotel is owned by Saudi Prince Alwaleed bin Talal Abdulaziz Alsaud.

Kingdom operates and owns 33 hotels worldwide. It has partnerships with Four Seasons Hotels jointly owned by the Prince and Microsoft’s Bill Gates.

The investment has been touted by Trade secretary Peter Favila as the first trophy investment under the 7-8-9 growth surge program capping President Arroyo’s administration.

The complex will house a 300-room Fairmont Hotel, a 30-suite Raffles Hotel and 189 Raffles –branded private residences or condo units similar to what Oakwood offers but higher end.

ALI owns 60 percent of the venture with Kingdom Hotel taking the balance.

The complex will be built at the present vacant lot serving as bus station of the Ayala Center shopping complex, and the adjacent Park Square 2 mall. The area measures 7,377 square meters.

Construction is set to start early next year and will be completed in three years time.

Of the 33 hotels, Kingdom owns, 19 are operational and 14 being developed. It has partnerships with major hotel firms Four Seasons Hotels and Resorts, Fairmont Hotels and Resorts, Raffles Hotels and Resorts and Movenpick Hotels and Resorts.