Bloomberg has discovered that billionaire owners, the Barclay brothers, have initiated arrangements to sell London's landmark Ritz hotel.
According to individuals familiar with the sales process, who wished to remain anonymous, the Barclays have hired brokerage group Jones Lang LaSalle, Inc. to work with Spartan Advisors, a firm founded by the brothers' long-term associate, Richard Faber.
It's being offered together with the building situated next-door on Arlington Street, which provides the possibility of constructing an approximately 50-room extension to the existing 136 rooms and suites inventory.
This also presents a rare opportunity for a buyer to reshape one of the capital's most storied hotels. Its adjoining casino area holds the potential for transformation into a different sort of guest space, such as a private members' club, said sources.
It's anticipated that only a small group of sovereign wealth funds and the world's highest-net-worth investors will be offered the chance to bid, but persons familiar with the proceedings said that any buyer would be able to install its own brand, meaning that major luxury hotel groups could also make a play for the property, which occupies a prime corner of London's St. James' district.
Although, reportedly, no price has yet been set, the Times of London has speculated that the deal might deliver around £800 million (about USD $1 billion)-a pretty tidy profit, considering that David and Frederick Barclay purchased the property in 1995 for £75 million.
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