Iconic hotel, valued at £600m, secures £200m facility from two banks, says Saudi investment firm
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.