FRHI may be sold by Middle Eastern owners

Discussion in 'Luxury Hotels' started by uggboy, Jun 24, 2015.  |  Print Topic

  1. uggboy
    Original Member

    uggboy Gold Member

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    FRHI may be sold by Middle Eastern owners

    This could get interesting, especially seeing which luxury brands are included in this package. :)

    SEE ALSO:
    http://frhi.com/
     
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  2. edekba

    edekba Gold Member

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    Do we know if FRHI actually owns a majority of the properties ... or just a "mgmt/franchisor" of the brands. From what I read most hospitality companies are in the asset light strategy ... so will one off hotels switch brands or will it be a wholesale take the entire portfolio?

    Also I thought there was an American Company holding some percentage of the company as well...
     
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  3. uggboy
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    uggboy Gold Member

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    I guess they own some of their properties, but over the past few years they changed to a "management/franchise" or "asset light" model. There was a time when the Raffles Hotel Singapore was owned by them, but they sold it to the Qataris, also of note was that Prince Al-Waleed might get bored of his hotel [management] company holdings, there was a rumor of this. Overall, seeing that the world has moved on and it's now a sellers market, it's no surprise that the investers into FRHI want to cash in "big time".

    More on the theme on Wikipedia:

    https://en.wikipedia.org/wiki/FRHI_Hotels_&_Resorts

    In 2010:

    Qatar takes $847 million stake in Fairmont Raffles
    http://www.reuters.com/article/2010/04/05/us-fairmontraffles-diar-idUSTRE6340RM20100405

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    Here's a list of the investments Kingdom Holdings of Saudi Arabia has at the moment in hotel management companies:

    http://www.kingdom.com.sa/investments/hotels/management-companies

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    Looks like that Kingdom Holdings of Saudi Arabia owns "only" 3 flagship properties at the moment, I remember there was a time when Prince Al-Waleed owned more hotel directly:

    http://www.kingdom.com.sa/investments/hotels/hotel-real-estate

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    Qatari Diar through their affilate Voyager Partners owns a majority stake in the FRHI management company, plus they own outright the Raffles Hotel in Singapore, Le Royal Monceau Raffles in Paris and others.

    http://www.ft.com/intl/cms/s/0/dd98d1d6-4321-11df-9046-00144feab49a.html

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    Interesting what Prince Al-Waleed anticipated for FRHI in 2010 as he told Bloomberg at the time:

    http://www.ft.com/intl/cms/s/0/dd98d1d6-4321-11df-9046-00144feab49a.html

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    I guess now in mid-2015 they explore an outright sale of the FRHI management/franchise company which incl. the brands of Raffles, Fairmont and Swissotel, but they might keep certain properties under ownership incl. Al-Waleed the Savoy in London, which is managed by Fairmont or the Qataris incl. the Raffles in Singapore, which is the flagship of FRHI worldwide. I wonder who's going to buy the FRHI hotel management/franchise company and how will it be integrated should the new owner be an established chain. We will see, time will tell.
     
    Last edited: Jun 24, 2015
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