Raffles Hotel to be sold to Qatar for $275m
Singapore’s famous Raffles Hotel is to be acquired by Qatar Diar, an arm of state-controlled sovereign wealth fund Qatar Investment Authority, for $275m, it was reported on Thursday.
The 123-year-old luxury hotel, renowned for its colonial grandeur and Singapore Sling cocktails, is set to be sold as part of a $847m deal for a stake in Fairmont Raffles Hotels International, The Times reported.
Qatar Diar this week agreed to pay $467m for a 40pc stake in Fairmont Raffles, with Saudi billionaire Prince Alwaleed Bin Talal set to cut his previously controlling interest in the group from 58pc to 35pc. US private equity firm Colony Capital will reduce its holding to 22pc.
The deal includes $105m in hotel managemement contracts for Fairmont Raffles and $275m for an unnamed hotel property.
Fairmont Raffles and the Prince’s Kingdom Holding Company confirmed that the sale of the Raffles Hotel is under discussion, The Times reported, with Qatar Diar said to be evaluating the cost of an estimated $100m refurbishment project.
The Singapore landmark is one of more than 100 hotels run by Fairmont Raffles. It was founded in 1887 and guests have included Noel Coward, Rudyard Kipling and Michael Jackson.
Qatar Diar’s property portfolio includes Le Royal Monceu in Paris, which is set to reopen under the Raffles brand later this year.