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RBS to put Grosvenor House Hotel up for sale
Grosvenor House Hotel, the famous five star London venue owned by Royal Bank of Scotland , is reported to be up for sale again. It is expected to raise between £600million and £700million.
CB Richard Ellis is being lined up to handle the sale and the hotel could be brought to the market as early as this month, Estates Gazette reports.
RBS is preparing for the disposal after a sharp rebound in commercial property values since August, with cash-rich domestic and overseas investors attracted by historically low pricing.
The proposed sale is the latest sign that the state-backed banks, RBS and Lloyds, are accelerating the unwinding of their property portfolios, much of which is distressed after a 44% fall in values between June 2007 and July 2009.
Grosvenor House, which is operated by Marriott , is on Park Lane in Mayfair and has 494 bedrooms. A price of £600million would represent £1.2million per room. Last year the venue was used for ceremonies including the Professional Footballers' Association Awards and the Mercury Music Awards.
RBS has tried to sell the hotel before, in 2007 and 2008, with a number of Middle East groups linked with a deal, including Kuwait's Adeem and Bahrain's ruling family.
RBS took control of the asset in 2001, when it paid £1.25billion for 12 Le Meridien hotels as part of a sale-and-lease-back deal that was used by Nomura to finance its £1.9billion acquisition of Le Meridien from Compass.
The deal was masterminded by Guy Hands, one of Britain's most high-profile private equity bosses and then a Nomura financier.
Le Meridien collapsed into receivership in 2003, and operation of Grosvenor House passed to Marriott.
CB Richard Ellis is being lined up to handle the sale and the hotel could be brought to the market as early as this month, Estates Gazette reports.
RBS is preparing for the disposal after a sharp rebound in commercial property values since August, with cash-rich domestic and overseas investors attracted by historically low pricing.
The proposed sale is the latest sign that the state-backed banks, RBS and Lloyds, are accelerating the unwinding of their property portfolios, much of which is distressed after a 44% fall in values between June 2007 and July 2009.
Grosvenor House, which is operated by Marriott , is on Park Lane in Mayfair and has 494 bedrooms. A price of £600million would represent £1.2million per room. Last year the venue was used for ceremonies including the Professional Footballers' Association Awards and the Mercury Music Awards.
RBS has tried to sell the hotel before, in 2007 and 2008, with a number of Middle East groups linked with a deal, including Kuwait's Adeem and Bahrain's ruling family.
RBS took control of the asset in 2001, when it paid £1.25billion for 12 Le Meridien hotels as part of a sale-and-lease-back deal that was used by Nomura to finance its £1.9billion acquisition of Le Meridien from Compass.
The deal was masterminded by Guy Hands, one of Britain's most high-profile private equity bosses and then a Nomura financier.
Le Meridien collapsed into receivership in 2003, and operation of Grosvenor House passed to Marriott.
Fri, 15th Jan 2010