01 May 2013
The Kingdom Holding Company has completed the refinancing of London's most famous hotel, The Savoy.
A company press release says the move caps a milestone event for a business worth in excess of £ 600 million and which underwent an historic physical restoration between 2008 and 2010, and has since been repositioned and stabilized for a long-term pre-eminent position in the London luxury hotel market.
Prince Alwaleed bin Talal, chairman of Kingdom Holding Company, said: "We were delighted in 2005 to have had the opportunity to acquire and restore one of the world's most famous hotels, and nearly eight years later, we are now proud to announce that we and our partners at Prestonfield, Bank of Scotland and Fairmont have firmly re-established the Savoy's leading market position, and we welcome our new lenders from Credit Agricole CIB and DekaBank to share in the future of this legendary hotel."
It was in 2005 when Kingdom, together with its partner Prestonfield Limited, an entity controlled by Bank of Scotland and which is now part of Lloyds Banking Group, partnered in a 50/50 joint venture to acquire the legendary hotel, with financing provided by Bank of Scotland and hotel management by Fairmont Hotels & Resorts.
The Savoy was subsequently closed for nearly 30 months to carefully restore the hotel at a cost of £ 230 million, the first such time in its 125-year history, under an interior design vision by Pierre-Yves Rochon, who also restored the acclaimed Four Seasons Hotel George V in Paris.
Since the Savoy's re-opening in late 2010, the Savoy has been recognized as one of the best hotels in the world by Travel + Leisure, Conde Nast Traveler's Gold List and other leading publications.
Not only has the Savoy been beautifully restored, but the business has been successfully repositioned within a rapid period, attracting institutional capital in a challenging capital market from two leading European lending organizations to refinance the Bank of Scotland's original senior debt.
Credit Agricole Corporate and Investment Bank and DekaBank Deutsche Girozentrale jointly provided a new five-year £ 200 million senior facility, with Prestonfield continuing to provide mezzanine financing and both Kingdom and Prestonfield continuing to own and ensure success of the landmark hotel on a 50/50 basis.
The Kingdom Holding Company has completed the refinancing of London's most famous hotel, The Savoy.
A company press release says the move caps a milestone event for a business worth in excess of £ 600 million and which underwent an historic physical restoration between 2008 and 2010, and has since been repositioned and stabilized for a long-term pre-eminent position in the London luxury hotel market.
Prince Alwaleed bin Talal, chairman of Kingdom Holding Company, said: "We were delighted in 2005 to have had the opportunity to acquire and restore one of the world's most famous hotels, and nearly eight years later, we are now proud to announce that we and our partners at Prestonfield, Bank of Scotland and Fairmont have firmly re-established the Savoy's leading market position, and we welcome our new lenders from Credit Agricole CIB and DekaBank to share in the future of this legendary hotel."
It was in 2005 when Kingdom, together with its partner Prestonfield Limited, an entity controlled by Bank of Scotland and which is now part of Lloyds Banking Group, partnered in a 50/50 joint venture to acquire the legendary hotel, with financing provided by Bank of Scotland and hotel management by Fairmont Hotels & Resorts.
The Savoy was subsequently closed for nearly 30 months to carefully restore the hotel at a cost of £ 230 million, the first such time in its 125-year history, under an interior design vision by Pierre-Yves Rochon, who also restored the acclaimed Four Seasons Hotel George V in Paris.
Since the Savoy's re-opening in late 2010, the Savoy has been recognized as one of the best hotels in the world by Travel + Leisure, Conde Nast Traveler's Gold List and other leading publications.
Not only has the Savoy been beautifully restored, but the business has been successfully repositioned within a rapid period, attracting institutional capital in a challenging capital market from two leading European lending organizations to refinance the Bank of Scotland's original senior debt.
Credit Agricole Corporate and Investment Bank and DekaBank Deutsche Girozentrale jointly provided a new five-year £ 200 million senior facility, with Prestonfield continuing to provide mezzanine financing and both Kingdom and Prestonfield continuing to own and ensure success of the landmark hotel on a 50/50 basis.
© Arab News 2013
