Qatari Diar to Acquire Raffles

11th April 2010 (Last Updated April 11th, 2010 18:30)

Raffles Hotel in Singapore may be acquired by Qatari Diar, the real estate arm of Qatar Investment Authority, for $275m. Both Fairmont Raffles and Qatar-based Kingdom Holding Company have confirmed that the sale of Raffles Hotel is under discussion. The property will be taken

Raffles Hotel in Singapore may be acquired by Qatari Diar, the real estate arm of Qatar Investment Authority, for $275m.

Both Fairmont Raffles and Qatar-based Kingdom Holding Company have confirmed that the sale of Raffles Hotel is under discussion.

The property will be taken over from owner Toronto-based hotel chain Fairmont Raffles Hotels International.

Last week, Qatari Diar bought a 40% stake in Fairmont Raffles for $467m, while Kingdom Holding Company holds 35% and US equity investor Colony Capital has a 22% stake.

The proposed sale is expected to include a long-term management contract allowing Fairmont Raffles to operate the hotel in future.

Qatari Diar is currently mulling over the cost of the acquisition and refurbishment of the hotel and adjacent retail and leisure facilities.

The $100m project will include the addition of 78 guestrooms, according to timesonline.co.uk.