Qatar’s government-owned Katara Hospitality has acquired a 50% stake in the five-star Savoy Hotel in London from Lloyds Banking Group for an undisclosed amount.

Qatar’s government-owned Katara Hospitality has acquired a 50% stake in the five-star Savoy Hotel in London from Lloyds Banking Group for an undisclosed amount.

Katara is indirectly controlled by the Qatar Investment Authority (QIA). Saudi billionaire Prince Alwaleed Bin Talal’s Kingdom Holding owns the remaining interest.

The transaction 'further solidifies the strategic partnership' between Alwaleed and the Qatari government through KHC, the Saudi firm said in a statement. Kingdom Holding owns 35% of Fairmont Raffles Holdings International Hotels in partnership with the Qatar Investment Authority.

The Savoy, located on The Strand, first opened in 1889 and is a grade II listed building. It reopened with 268 bedrooms in October 2010 after a £230 mln (€290 mln) renovation that took two-and-a-half years.

Earlier this year QIA also bought a portfolio of five luxury Intercontinental hotels across Europe. In June, Katara Hospitality announced it had acquired the Dutch company which owns the Intercontinental Amstel Amsterdam, Intercontinental Carlton Cannes, Intercontinental Madrid, Intercontinental Frankfurt and the leasehold interest on the Intercontinental De La Ville Rome. Last year, the Qataris bought IHG's London Park Lane InterContinental and a 80% stake in its Barclay hotel in New York.

TOP HOTEL INVESTOR
Qatar was the top investor by volume in the European hotels sector in 2013 as its SWF expanded its network of luxury hotels.

QIA was the largest single investor, accounting for almost €1.3 bn of the activity. All its deals were focused on the luxury hotels segment, a particular favourite among Middle Eastern investors.

Earlier this month, Qatar's Constellation unit - a unit of the Qatar Holding investment vehicle which in turn forms part of the QIA - said it will invest €330 mln to acquire the InterContinental Paris – Le Grand luxury hotel asset from InterContinental Hotels Group.

The asset, which is located in the heart of Paris overlooking the Opera House, has 470 guest rooms. It first opened in 1862 and has operated under the InterContinental brand since 1982. In 2013, the hotel generated revenues of $118 mln and EBIT of $22 mln. The bid represents a 29% premium to the hotel’s book value at end-June of $342 mln (€255 mln).

See the December edition of PropertyEU Magazine for more on hotel investment into Europe.