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Savoy 'up for sale' as Saudi owner's billions dwindle
Jonathan Prynn16 Apr 2009
THE Savoy Hotel may soon be put up for sale because of huge losses suffered by its billionaire Arab owner.
Industry sources say that Prince Alwaleed of Saudi Arabia is looking for a buyer for London's most famous hotel, which could be worth more than £200million.
The Prince, who is ranked 22nd on the Forbes magazine list of billionaires, has suffered huge falls in the value of his investments since the start of the credit crunch.
His personal wealth is said to have gone 'from $21billion to $13billion in the past year. The most painful loss came on his five per cent stake in American banking giant Citigroup, which has collapsed in value by more than 90 per cent.
The 54-year-old prince - dubbed the Warren Buffet of the Gulf because of what were seen as astute investments - also has big holdings in Songbird Estates, the majority owner of Canary Wharf, Euro Disney and News Corporation.
One analyst said: "He's having a very challenging time. He's definitely a seller rather than a buyer. He'd sell just about anything at the right price, although finding buyers able to fund such deals is the challenge."
News of the possible sale comes as a £100million refurbishment of the 120-year-old Strand institution approaches completion. The 268-room hotel is expected to reopen towards the end of the summer after an 18-month refit.
But industry observers fear that the five-star Savoy could struggle to attract guests to its £350-a-night rooms in the current economic climate.
If the hotel is sold, the new owners will be the fifth in little more than a decade. It was bought from its long standing British owners in 1998 by American private equity house Blackstone.
In 2004 it was snapped up by a group of Irish investors who sold it on to the prince's Fairmont hotels group eight months later for an estimated £250million. The prince is also said to be selling another of his most famous hotels, Raffles in Singapore, for up to £300million.
The prince lives an immensely lavish lifestyle, owning a 282ft yacht, with an even bigger one on order, 300 cars and a private jumbo jet.
He is also believed to have ordered an Airbus A380, the world's largest passenger aircraft for delivery next year, making it the biggest private jet on the planet.
Alwaleed and his children live in a $100million sand-coloured palace whose 317 rooms are adorned with 1,500 tons of Italian marble, silk Oriental carpets, gold-plated faucets and 250 TV sets.
Reader views (6)
When you are down to your last 300 cars you know things are tough.
- MikeS, London, 22/12/2010 09:37
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I understand his wife has a part time job, and dutifully puts her earnings in the joint account they have at The Woolwich! This man is not happy, would you be, wondering where your next billon is coming from? We should of course be commiserating with the Prince, it can't be easy, what with the leccy and water bills coming in all at once!In the spirit of leavng Britney alone! I say we should leave the Prince alone to drive all of his cars and watch all of his telly's in peace! Huzzah! have nice day you richies!
- Bill Reddick, Vancouver Canada, 20/06/2010 09:25
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Thats only his personal wealth include the "family" (Royal) and you are talking unlimited supply.
- Rob, Farnham, Surrey, 16/04/2009 15:05
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Maybe his mate Rupert Murdoch can help him out, as he seems to have access to unlimited amounts of cash.
A billion here, a billion there. Pretty soon it starts adding up to real money.
- Kate, London, 16/04/2009 14:12
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Just what everyone needs - 300 cars and 250 TV sets!!
Poor soul, down to his last 13 billion.
WHAT ABOUT THE COUNTLESS MILLIONS LIVING IN POVERTY IN THE UK AND IN EVERY OTHER COUNTRY ON THIS PLANET?
I am not impressed with such greed.
- Reuben Camara, Morecambe UK, 16/04/2009 13:37
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I wish I was down to my last 13 billion.....
- Mark, St Albans, 16/04/2009 12:13
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