Raffles Hotel Sold to Qatari Diar for $275 Million
Posted on 04/08/2010
The Raffles Hotel in Singapore is historic and is known for its colonial splendor, and yes, the Singapore Sling cocktail. Qatari Diar, a unit of the Qatar Investment Authority is buying the hotel from Raffles Hotels International. Saudi Prince Alwaleed Bin Talal controls the Fairmont Raffles.
Qatari Diar earlier had bought a 40% stake in Fairmont Raffles itself, a deal that lowers Saudi-based Kingdom Holdings’s stake from 58% to 35%. U.S. real estate investor Colony Capital sliced its holding to 22% ownership. The US$ 847 million headline price comprises US$ 467 million for a 40% stake, another US$ 105 million in the form of hotel management contracts that Qatari Diar will award to Fairmont Raffles on a number of other hotels it owns, plus US$ 275 million for an unnamed hotel property.