Grand Dame Hotel, The Ritz London - JLL helps close historic sale of unique London hotel
One of the most iconic hotels in the world – The Ritz London – is one of the only three original hotels opened by the eponymous César Ritz and the second after The Ritz in Paris. The hotel, launched in 1906, was acquired by the British billionaire twins – the Barclay brothers – for £75 million in 1995. Almost two and a half decades later, the owner, looking to sell the historical asset for an estimated £800 million, sought JLL’s professional expertise and advice.
JLL’s Investment Sales & Advisory team and our Hotel & Hospitality specialist group ran a highly confidential process, articulating the inherent value in this generational real estate and its ability to extract sustainable long-term value. The offer was a dream opportunity for high-net-worth investors to purchase this freehold trophy asset in Mayfair, London, overlooking Green Park and Buckingham Palace. Considering the asset’s high-profile nature and unrivalled cachet, JLL mobilised its global network and relationships to identify a highly qualified and select group of investors for this transaction. Out of a closely vetted shortlist of all prospects, a Middle Eastern investor was identified as the most suitable buyer.
Having expertise in luxury hotel investments and sales, our team could structure a comprehensive divestment process to establish a compelling business case for investors. The team also helped secure the highest proceeds with the greatest execution certainty. The benefit to the investor is that they get rebranding rights for this rare commodity, which means the freedom to implement wholly unencumbered planning for the property’s branding and management.