The Barclay twins are reportedly looking to sell The Ritz London, the five-star, ultra-exclusive hotel in Piccadilly that has over the years become a symbol of high society and luxury.
Sources close to the businessmen have told Reuters that they had recently been approached with unsolicited bids for the Ritz.
In addition, recent financial accounts provided valuation for the hotel and this further fueled speculations that it might have been put on the market and that its current owners might be ready to sell it, if they receive a high enough offer from interested buyers.
Swiss hotelier César Ritz opened The Ritz London in May 1906. The hotel was not off to a good start at first, but began to gain momentum toward the end of World War I. It later on became popular with politicians, actors, writers, and socialites to turn into the high society hotel it is now.
The Barclays purchased The Ritz in 1995. The hotel currently features 111 rooms, 25 suites, a range of food and beverage facilities, and the iconic Palm Court, which hosts the famous Traditional Afternoon Tea at the Ritz that invites guests of the hotel to indulge in one of Britain’s most popular traditions. The Ritz also includes The Ritz Club, a casino located in the basement of the hotel building that features some of the most popular table games, evoking the Edwardian gilded gambling venues of Europe.
The Ritz Valued at £800 Million
According the Ritz’s latest accounts, the property “is not and has not been marketed for sale.” However, these same accounts included information about its estimated value, which is believed to be standing at £800 million. Sources believe that the publication of the hotel’s value is a significant hint from the Barclay brothers that they are mulling the property’s sale.
Accounts say that the disclosed valuation reflected the Ritz’s freehold tenure, prime location not far from the Buckingham Palace, the quality of the building, the brand name, and the casino lease. The Ritz reported turnover of £47 million and operating profit of £15 million in 2018.
It emerged a few years ago that the Barclays were looking to sell The Ritz Club. The casino was valued at around £200 million at the time. The two businessmen were reported to have tapped gaming advisory boutique Oakvale Capital to run the sale process on their behalf. A sale of the gambling facility, which its owners leased to London Clubs International in 1998, never occurred.
The Ritz Club has been part of The Ritz Hotel, in one form or another, since the hotel’s opening in 1906. It has served as a ballroom, a bar and grill, and an entertainment venue. It was converted into a casino in 1977 and has since then become a popular spot for high roller gamblers. If the Ritz indeed ends up being sold to a new owner, the transaction would include The Ritz Club’s lease through 2033.
Source: Yours for $1 billion only: the glamor of the London Ritz, Reuters.com
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