Complete Property Market Updates of Singapore

May 12, 2008

Fairmont to sell Raffles Hotel

Filed under: About Singapore,General,Hotel — Propertymarketupdates @ 3:49 am

Fairmont Raffles Hotels International said on Thursday that it will sell its stake in Singapore’s landmark Raffles Hotel to a consortium led by ex-Credit Suisse banker Mark Pawley.
 
Fairmont, which is controlled by Saudi Prince Alwaleed bin Talal and US private equity firm Colony Capital, did not disclose the selling price, although Singapore media said the figure was around $650 million (US$471.7 million).

Fairmont did not name the members of the consortium. Mr Pawley is CEO of Singapore-based private equity firm Oxley Capital that specializes in real estate, though an executive at Oxley told Reuters the firm was not the buyer.

The Business Times cited unnamed sources as saying the overseas buyer was linked to a European family.

Colony bought the 121-year-old hotel for about $200 million in 2005 as part of a bigger $1.7 billion acquisition of the Raffles Holdings hotel chain, the Business Times said.

Raffles Hotel, a Singapore national monument, was founded in 1887 by four Armenian brothers. In its colonial heyday, its guests included luminaries such as authors Joseph Conrad, Rudyard Kipling and Somerset Maugham.

Fairmont, which operates 88 hotels globally under the Raffles, Fairmont and Swissotel brands, said in a statement it will continue to manage the Singapore hotel after the sale. — REUTERS

Source : Business Times – 8 May 2008

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