Two of London’s trophy hotels are close to changing hands for almost £400m.
Sources at the seventh International Hotel Investment Forum in Berlin last week said private hotel group Von Essen was close to securing a £95m deal to buy the Lanesborough, on Hyde Park Corner, SW1, from Abu Dhabi Investment Authority.
And private investor Simon Halabi is tying up his £270m acquisition of the Savoy Group’s Claridge’s on Brook Street, W1.
At more than £1.3m per room, this would make Claridge’s the most valuable hotel in London. Most of the other six bids, including one from Zara founder Amancio Ortega (6 March, p30), were between £230m and £260m.
Claridge’s was put up for auction in October 2003 after £55m of refurbishments.
Two years ago, Halabi’s proposed £125m deal to buy the Lanesborough fell through. However, ADIA has revived plans to sell the hotel, following an approach from Von Essen, which is looking to make its central London debut. It specialises in country house hotels.
Poorer trading in the hotel sector since Halabi’s proposed deal has caused the price to dip to £1m per room, equating to £95m, sources at Berlin said.
The sales come as a £500m-plus deal for Savoy Group’s three other hotels – the Berkeley in Knightsbridge, SW1; the Savoy, as well as Simpson’s-in-the-Strand restaurant, on Strand, WC2; and the Connaught in Mayfair, W1 – is being lined up.
Saudi Arabia’s Kingdom Hotel Investment Group has been tipped to buy the three deluxe London hotels. The vehicle is backed by Saudi billionaire Prince Alwaleed bin Talal, who also owns a 25% stake in Four Seasons.
They are not officially on the market, but the decision by Savoy – owned by private equity funds Blackstone and Colony Capital – to sell Claridge’s aroused interest.
Blackstone and Colony paid £520m for the group – including the three hotels being eyed by bin Talal, Claridge’s, and the recently sold Lygon Arms in the Cotswolds – in May 1998.
They are likely to seek £1m per room for the Connaught/Savoy/Berkeley portfolio, pricing them at more than £500m.
References: EGi News 29/03/04
