London's Ritz Hotel has been sold for less than its £1 billion price tag in a move that fuels the dispute between the twin Barclay brothers who have owned the landmark for 25 years.
The sale price has not been disclosed but Bloomberg has reported that the property sold for less than £800 million.
The Ritz closed on Friday for the first time since it was opened by Ceasar Ritz in 1906 as London shutdown amid the coronavirus pandemic. The grand hotel and casino occupies a prime spot in London’s St James’ district and is at the heart of a battle among the heirs of Sir David and Sir Frederick Barclay.
It is with great sadness that we have taken the decision following the Government’s advice, to temporarily close The Ritz London, the first time in our history. As soon as it is safe to do so, we will reopen our doors.
— The Ritz London (@theritzlondon) March 25, 2020
Please take great care of yourselves.
Sal & The Ritz Team pic.twitter.com/5Vp4TCjUQL
The dispute became public last month after a court hearing revealed Sir Frederick was being secretly recorded by a nephew at the hotel. Earlier this month, Sir Frederick had said there was "no place for any sale at less than full value," and warned he would sue his relatives over the deal to offload the legendary hotel.
“We are surprised and perturbed by the announcement the Ritz hotel has allegedly been sold. We have neither been consulted nor have we approved this sale,” a statement from Sir Frederick and his daughter Amanda said. “As we outlined earlier this month, any potential purchaser would face significant litigation if this deal is not approved by all sides.
“Sadly we cannot get away from the fact that this deal, if it has occurred, appears to have been pushed through in the middle of the coronavirus crisis in the hope that will be uncontested.”
Macfarlanes, an advisory firm, said in a statement on Friday that it advised one of its private Qatari investor clients on the acquisition of the hotel that opened in London’s Mayfair in 1906.
“It is a privilege to become the owner of the iconic Ritz Hotel and have the opportunity to build on its innate style and grand traditions,” a spokesperson for the new owner said in the statement.
Media reports said that offers for the 136-room hotel were coming in around £700 million, less than hoped for but nearly ten times the £75 million figure originally paid by the Barclay twins.
A representative for Ellerman Investments Ltd, an investment vehicle of the Barclay brothers that owns the hotel, declined to comment earlier.
The two men have also recently been considering offloading another of their prominent holdings, the Telegraph newspaper.
The Ritz is being sold together with an adjoining property that offers the potential for an extension.
Opened in 1906 by Swiss hotelier Cesar Ritz, the high society hotel hosted Charlie Chaplin in the 1920s and was used as a meeting place by Winston Churchill, Dwight Eisenhower and Charles de Gaulle to discuss operations during World War Two.
