(EMAILWIRE.COM, April 24, 2009 ) One of the most famous hotels in the world, Raffles in Singapore, has hosted Queen Elizabeth II, Ava Gardner and Charlie Chaplin, but now this symbol of colonial grandeur has been put onto the market for £300 million as the effects of the credit crunch hit its royal owner…
This is one problem that no amount of Singapore Slings could solve – Raffles’ owner, Prince Alwaleed of Saudi Arabia, is feeling the pinch of the crunch - proof that even royalty has to cut back in these uncertain times.
Raffles, named after SingaporeÂ’s founder Sir Stamford Raffles, dates from 1887 and is well known for its luxurious accommodation and superb restaurants. It boasts a tropical garden courtyard, museum and Victorian-style theatre and has attracted thousands of celebrities, political leaders and royalty over the years.
One of its major claims to fame is the Singapore Sling cocktail, which was invented by bartender Ngiam Tong Boon at Raffles Hotel between 1910 and 1915.
The complex recipe, involving pineapple, cherries and gin, was said to have been preserved in the hotel safe, even though the original formula had in fact been lost and was pieced together again from the memories of old barmen in the 1970Â’s.
It is also reputedly where the sole surviving wild tiger in Singapore was shot and made extinct, possibly in the Long Bar in 1902. (Cluedo anyone?)
Now, in a break from its glittering past, the Fairmont Raffles Hotel International group, part of the PrinceÂ’s Kingdom Holding Company, (KHC) has announced that it is seeking buyers for Raffles as it tightens its purse strings.
KHC has seen a big drop in the value of its investments in companies including Songbird Estates, the majority owner of Canary Wharf and Euro Disney.
According to Fortune Magazine, the Prince’s wealth has fallen over the last year from £14.3 billion, leaving him to struggle along on a mere £8.7 billion - putting him at number 22 on the world’s richlist.
The 121-year-old Raffles Hotel and its adjacent shopping arcade were last sold in 2005 to USA-based private equity group Colony Capital for £1.1 billion.
Fairmont Raffles, created from the merger three years ago of the Fairmont and Raffles groups, is a joint venture with Colony Capital, the US investment firm that once co-owned The Savoy. The group has 91 hotels under the Fairmont, Raffles, and Swissôtel brands.
The group is even said to be looking for a buyer for The Savoy, London’s most famous hotel, which is scheduled to reopen at the end of the year after a £100 million overhaul.
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