While big-name hospitality brands continue to draw hefty price tags for single hotels, Kingdom Hotels International announced plans Monday, Jan. 30, to add one more significant piece of real estate to its existing empire, agreeing to pay $3.9 billion for Toronto-based Fairmont Hotels & Resorts Inc.
Kingdom Hotels, which is controlled by Saudi Prince Alwaleed bin Talal bin Abdulaziz Alsaud and Los Angeles-based real estate investment group Colony Capital LLC, will merge Fairmont with its Singapore-based chain, Raffles, creating a chain with 120 hotels across 24 countries.
Fairmont may be the clear winner in this deal, through the assumption of its debt and the new partnership with Raffles, the company valued the deal at $5.5 billion.
The Toronto-based chain rejected a $1.18 billion partial takeover offer from Carl Icahn, for 41% of its outstanding shares in December as inadequate. — Carolyn Murphy
Alwaleed leads Fairmount purchase
Fairmont spurns Ichan offer
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