London Ritz's glamour, all yours for just $1B
The London Ritz is seen on Thursday. A source says its owners had recently received unsolicited offers for the iconic establishment.
London - Owners of iconic hotel said to be open to selling luxurious establishment
The owners of London's Ritz hotel, a haven for royals, statesmen and movie stars, have hinted that they would be open to selling the luxury establishment for $1 billion, a source close to them said on Thursday.
Opened in 1906 by Swiss hotelier Cesar Ritz, the high society hotel hosted Charlie Chaplin in the 1920s and was used as a meeting place by Winston Churchill, Dwight Eisenhower and Charles de Gaulle to discuss operations during World War Two.
Today, it offers its well-heeled global clientele 111 rooms, 25 suites, a range of bars and restaurants and the Palm Court, where an elaborate afternoon tea is served and men have to wear ties. The Ritz has been owned since 1995 by David and Frederick Barclay, twins who also own the Daily Telegraph newspaper. The pair usually decline interviews and give little away in public about their business strategy.
A source close to the twins told Reuters they had recently received several unsolicited offers for the Ritz, and its latest accounts gave a valuation for the hotel, a move that has fuelled speculation they would sell if they received a high enough bid. The accounts said the business "is not and has not been marketed for sale". But the source confirmed that the publication of the valuation, which was more than £800 million ($980 million), was a significant hint from the Barclays.
The directors said in the accounts that the valuation reflected the hotel's freehold tenure, its prime location on the busy Piccadilly thoroughfare near Buckingham Palace, the quality of the building, the casino lease and the brand name.
Turnover stood at £47 million in 2018, while the operating profit was £15 million, according to the accounts.