Prince Alwaleed: "These transactions mark yet another step for KHC towards the realization of the value of its investments."
Kingdom Holding Company (KHC), Chaired by HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, announced the completion of the sale of the world renowned Fairmont San Francisco Hotel atop Nob Hill for close to $200 million to a consortium led by an affiliate of Oaktree Capital Management LP and real estate investor Michael Rosenfeld and his Woodridge Capital Partners LLC. The hotel was purchased from Maritz, Wolff & Co., which acquired its investment in the hotel in 1998 in partnership with Kingdom Holding. KHC has retained a 28% interest in the hotel. Fairmont Hotels & Resorts, based in Toronto, Canada, will continue to manage the storied hotel. KHC owns a stake of 35% in Fairmont Hotels and Resorts.
Prince Alwaleed commented: "These transactions mark yet another step for KHC towards the realization of the value of its investments."
The Fairmont San Francisco opened in 1907. The Beaux Arts-style building was designed by New York architectural firm McKim, Mead & White and Julia Morgan. Over its 105-year history, it has been home to many U.S. presidents, world leaders and entertainment stars.
John Brady, Head of Global Real Estate for Oaktree Capital Management, said: "We look forward to joining Oaktree's significant real estate experience and an investor base that includes prominent public and corporate pension funds together with longstanding relationships with Woodridge, Fairmont Hotels and Resorts, Kingdom Holding and our new partners - the hotel's outstanding employees and the City of San Francisco, one of the truly great cities of the world. With 591 guest rooms and suites and over 55,000 square feet of conference and function space, the hotel is renowned for its three restaurants and lounges. Its location offers spectacular views of the city and the Bay, and is the only spot in San Francisco where each of the city's cable car lines meet."
Michael Rosenfeld stated: "The Fairmont San Francisco hotel's rich history, elegance and beauty make it a one-of-a-kind property that cannot be replicated today. We are excited to be in such a distinguished partnership with a property that symbolizes the great City of San Francisco."
Fairmont Raffles is an integral component of KHC's diverse hotel portfolio. In 2010, KHC announced an US$847 Million transaction with Qatari Diar involving Fairmont Raffles Holdings International (FRHI). Under the agreements, Voyager has acquired for a combination of cash and other consideration a 40% shareholding in FRHI. In addition, QDHP has undertaken to provide FRHI with a number of future management contracts for hotels that will be branded either Fairmont, Raffles or Swissotel. In 2006, KHC and Colony completed the acquisition of Fairmont Hotels and Resorts which was combined with the Raffles Hotels Group.
© Press Release 2012
