Saudi prince eyes up Savoy hotel

The Savoy is a London landmark

The owners of London's prestigious Savoy hotel have said they are in talks to sell the business to a group led by Saudi prince al-Waleed bin Talal.

Quinlan Private, which bought the Savoy and three other London hotels for £750m in May, said the deal would deliver "an immediate return" on its investment.

It added that the sale would allow it to focus on the other hotels - the Berkeley, the Connaught, and Claridges.

The deal would also include the Simpson's in the Strand restaurant.

Prince al-Waleed, said to be the world's fourth richest man, is part of a consortium that also includes the corporate banking arm of HBOS.

Upturn

There was no word on how much the Savoy is likely to fetch, but the Reuters news agency reported that the prince was set to contribute about £200m ($357m) towards the deal, citing unnamed sources.

Prince al-Waleed, who owns stakes in the Four Seasons group and the George V in Paris, has a track record of investing in luxury hotels.

If the sale goes through, the prince is expected to appoint Canadian hotels operator Fairmont as the Savoy's managers.

There has been a flurry of deals in the hotels sector in recent months as the industry recovers from a slump triggered by the 11 September attacks.

The Savoy, a London landmark, was built in 1889 on a site overlooking the river Thames, close to the West End shopping and theatre district.

Simpson's, situated next door to the Savoy, is a London institution famed for serving traditional roast beef dishes in a wood-panelled dining room.

Quinlan, a Dublin-based property company founded by former Irish tax inspector Derek Quinlan, bought the Savoy from US private equity group Blackstone.