Leading International Property Investment & Advisory Group Agrees to Acquire The Savoy Group

Apr 5, 2004, 00:00 AM by User Not Found
London & Dublin, April 5, 2004: A group of investors led by Quinlan Private, a leading international property investment and advisory group, has agreed to acquire The Savoy Group (the “Group”) from The Blackstone Group (“Blackstone”) and Colony Capital LLC (“Colony”) for a consideration of £750 million or approximately US$1.37 billion. The transaction will close on or before May 8. Following the acquisition, Quinlan Private looks forward to working with the management team of The Savoy Group and each hotel will retain its distinct identity.

London & Dublin, April 5, 2004: A group of investors led by Quinlan Private, a leading international property investment and advisory group, has agreed to acquire The Savoy Group (the “Group”) from The Blackstone Group (“Blackstone”) and Colony Capital LLC (“Colony”) for a consideration of £750 million or approximately US$1.37 billion. The transaction will close on or before May 8. Following the acquisition, Quinlan Private looks forward to working with the management team of The Savoy Group and each hotel will retain its distinct identity.

The Savoy Group was acquired by Blackstone and Colony in 1998 for £520 million. In the five years since that acquisition, Blackstone and Colony have re-invested in improving and upgrading The Savoy Group hotels and restaurants.

Derek Quinlan, Chairman of Quinlan Private, commented, “We are delighted to announce an agreement to acquire The Savoy Group. Our investment will respect the iconic status of the Group. The acquisition provides Quinlan Private with a unique opportunity to extend its hotel portfolio and use its experience and resources to enhance the international standing of the hotels comprising The Savoy Group.”

John Kukral, President of Blackstone Real Estate Advisors said “We, along with our partners Colony, are pleased to sell The Savoy Group to Quinlan Private. We would like to give our thanks to the great management team led by Geraldine McKenna and all the employees of the company for making this investment a success for ourselves and Colony. Through their continued dedication to excellence and under the stewdardship of Quinlan Private, a long term investor in the hospitality industry, the assets are poised to take advantage of the improving tourism and travel markets”.

The Savoy Group

The Savoy Group is a full service, super-luxury hotel group with 772 bedrooms. The Group comprises four of London’s leading super-luxury hotels (The Berkeley, Claridge’s, The Connaught and The Savoy) and over 50% of the super-luxury hotel rooms in the city. Each of the Group’s hotels is famous for its distinct character and unique style.

Quinlan Private

Quinlan Private, Ireland’s first independent private client advisory group, was founded in 1989. Quinlan Private has an established competence, as principal and advisor, in originating, structuring, financing, developing and managing a diversified portfolio of prime assets. These assets include commercial office blocks, shopping centres, car-parks and hotels throughout Europe and North America. Its current property portfolio comprises approximately 140 assets. It has a proven distribution capacity and works with major international banking groups to syndicate and place private equity in property transactions. Recent transactions, originated and executed by Quinlan Private, include the acquisition of the Four Seasons Hotels in Milan, Budapest and Prague. Quinlan Private recently acquired a range of commercial property assets located in Hungary and the Czech Republic.

The Blackstone Group

The Blackstone Group, a private investment bank with offices in New York, London and Hamburg, was founded in 1985. Blackstone Real Estate Advisors has raised four funds representing approximately US$4 billion in total equity. The group has made over 100 separate investments in hotels, offices and other commercial properties with a total transaction value in excess of US$15 billion. In addition to real estate, The Blackstone Group's core businesses include Private Equity Investing, Corporate Debt Investing, Marketable Alternative Asset Management, Mergers & Acquisitions Advisory, and Restructuring & Reorganization Advisory.

Colony Capital LLC.

Since 1991, Colony Capital has invested over US$10 billion in over 5,000 assets through various corporate, portfolio, and complex property transactions. Colony has a staff of over 100 and is headquartered in Los Angeles, with offices in New York, Paris, Rome, London, Madrid, Beirut, Hawaii, Singapore, Tokyo, Taipei, Shanghai and Seoul.