Qatar said to be in talks to raise Fairmont Raffles stake

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

Qatar is in negotiations to increase its stake in privately held Fairmont Raffles Hotels International, it has been reported.

Qatar’s real estate investment arm Qatari Diar, alongside Cayman-registered fund Voyager Partners in 2010 bought 40 percent of the luxury hotelier in agreements worth $847m.

London’s Financial Times said that the oil and gas-rich Gulf state was now in talks to acquire US-based Colony Capital’s shareholding, which was around 22 percent following the 2010 deal.

“I don’t think it’s any secret that we’ll be increasing that stake,” Christopher Knable, chief operating officer of Katara Hospitality, the hotels division of Qatar’s sovereign wealth fund, told the newspaper. Knable did not specify whether it would be Katara that would be purchasing the stake, or another state-linked entity.

A person familiar with the matter told the Financial Times that Qatar’s total stake in the hotelier now stood at around 45 percent, with the remaining 55 percent shared equally between Colony and Kingdom Holding, the Saudi Arabian investment firm led by Prince Alwaleed bin Talal.

Any new transaction could see Qatar buy Colony’s current stake of more than 20 percent, with Kingdom Holding keeping its own shareholding in Fairmont.

Colony and Qatar have been done business in the past, with the investment firm’s founder Tom Barrack in 2011 selling French football club Paris St Germain to investors in the Gulf state. Last year, Colony also sold Sardinia-based luxury resorts firm Smeralda Holding to Qatar for approximately $1bn.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Austerity? Not for us, say rich Gulf states as oil slides

Austerity? Not for us, say rich Gulf states as oil slides

Economic defences which the Gulf states built up after the global...

Saudi Arabia builds start-up culture with state oil money

Saudi Arabia builds start-up culture with state oil money

Gov't has previously has found it hard to promote start-ups in...

Why PE's back in vogue in the Middle East

Why PE's back in vogue in the Middle East

Confidence is returning to the Gulf’s private equity market after...

Most Popular
Most Discussed
  • 16
    Emirates could offer cheaper fares by April

    I was an avid traveller on Emirates, very good service a few not so good times but hey it can happen with any airliner. Now since the last 2 years, i've... more

    Tuesday, 27 January 2015 7:30 PM - Arjun
  • 9
    Expat dies after car plunges from high rise car park in Abu Dhabi

    It looks like the small black/yellow barrier worked like a ramp when the car was reversing and lifted it over the very short outside wall. Very very dangerous... more

    Tuesday, 27 January 2015 12:47 PM - Klaus B.
  • 8
    Rise of the Islamic fashion industry

    It feels great to see that many fashion designers are coming with with the new trends of Muslim clothes. Along with abaya addict, i love the designs offered... more

    Tuesday, 27 January 2015 12:46 PM - Hafeeza Noor