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Fairmont to sell Singapore's Raffles Hotel

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  • Fairmont to sell Singapore's Raffles Hotel

    Reuters
    May 8 2008


    Fairmont to sell Singapore's Raffles Hotel


    Thu May 8, 2008 3:21pm IST
    (Updates with confirmation of sale from Fairmont)


    SINGAPORE, May 8 (Reuters) - Fairmont Raffles Hotels International
    said on Thursday that it will sell its stake in Singapore's landmark
    Raffles Hotel to a consortium led by ex-Credit Suisse banker Mark
    Pawley.


    Fairmont, which is controlled by Saudi Prince Alwaleed bin Talal and
    U.S. private equity firm Colony Capital, did not disclose the selling
    price, although Singapore media said the figure was around S$650
    million ($471.7 million).


    Fairmont did not name the members of the consortium. Pawley is CEO of
    Singapore-based private equity firm Oxley Capital that specializes in
    real estate, though an executive at Oxley told Reuters the firm was
    not the buyer.


    Singapore's Business Times cited unnamed sources as saying the
    overseas buyer was linked to a European family.


    Colony bought the 121-year-old hotel for about S$200 million in 2005
    as part of a bigger S$1.7 billion acquisition of the Raffles Holdings
    hotel chain, the Business Times said.


    Raffles Hotel, a Singapore national monument, was founded in 1887 by
    four Armenian brothers. In its colonial heyday, its guests included
    luminaries such as authors Joseph Conrad, Rudyard Kipling and Somerset
    Maugham.


    Fairmont, which operates 88 hotels globally under the Raffles,
    Fairmont and Swissotel brands, said in a statement it will continue to
    manage the Singapore hotel after the sale. (Reporting by Daryl Loo and
    Kevin Lim, editing by Neil Chatterjee)
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