Kingdom completes refinancing of London's Savoy

Iconic hotel, valued at £600m, secures £200m facility from two banks, says Saudi investment firm
By Daniel Shane
Wed 01 May 2013 08:33 AM

Kingdom Holding, the investment firm controlled by Saudi Arabia’s Prince Alwaleed bin Talal, has completed its refinancing of London’s iconic Savoy hotel.

In a statement, Kingdom said that French lender Credit Agricole and Germany’s DekaBank have jointly provided a £200m senior facility, with the property’s co-owner Prestonfield continuing to provide mezzanine financing.

The central London property, which first opened in 1889 is 50-50 owned by Riyadh-based Kingdom Holding and Prestonfield, an entity controlled by the UK’s Lloyds Banking Group. Kingdom Holding says that the hotel is worth in excess of £600m.

The Savoy was acquired by Kingdom and Prestonfield in 2005 and underwent £230m of renovation works between 2008 and 2010, during which time the 268-room hotel was closed.

Kingdom Holding, which is 95 percent owned by billionaire Prince Alwaleed, has a number of other hotel investments in its portfolio, including 48 percent of Canadian chain Four Seasons.

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