Hogan Lovells Advises Kingdom Holding Company in the Refinancing of London’s Historic Savoy Hotel
02 May 2013
LONDON, 2 May 2013 – Hogan Lovells has advised Kingdom Holding Company in the refinancing of London’s historic hotel, The Savoy, valued in excess of £600 million. Kingdom is chaired by HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud of Saudi Arabia.
Kingdom initially acquired the luxury hotel in 2005 in a 50/50 joint venture with Prestonfield Limited, an entity controlled by Bank of Scotland and now part of Lloyds Banking Group.
The Savoy underwent an intense physical restoration from 2008 to 2010, the first in its 125-year history, at a cost of £230 million. The hotel has since attracted institutional capital from two leading European lending organizations – Crédit Agricole Corporate and Investment Bank and DekaBank Deutsche Girozentrale – to refinance the Bank of Scotland’s original senior debt. The lending institutions jointly provided a new five-year £200 million senior facility, with Prestonfield continuing to provide mezzanine financing and own the landmark hotel alongside Kingdom Holding Company on a 50/50 basis.
The Hogan Lovells financing team was led by London corporate finance partner Colin Craik.
Commenting on the transaction, Craik said:
“We are pleased to have advised our longstanding client, Kingdom Holding Company, on this important refinancing of one of the world’s most iconic hotels, reinforcing our client’s strength amidst a challenging capital market.”