Barclays may sell Ritz London to Sidra Capital
Billionaire twins Sir David and Sir Frederick Barclay have recently spent millions on the Ritz Club amidst reports of early stages of a sale deal for The Ritz Hotel
The Ritz Club, featuring some of the most popular table games, is a high-fend casino housed in the basement of The Ritz. While previously a hot spot for wealthy gamblers, the gaming facility has now been underperforming for an extended period.
As per corporate documents, the Barclay twins have poured in £8 million on the club after entering initial discussion to sell The Ritz to interested investors. It is not known if The Ritz Club would be part of the deal.
The Ritz Club reported a pre-tax loss of £8.9 million in 2018. In 2017, the club reported a £11.3 million pre-tax loss, while the Barclays spent £10 million on the operation.
The billionaire businessmen had bought The Ritz along with the casino in 1995 for £75 million. Besides the Ritz Club, the property also has 25 suites and 111 hotel rooms, multiple food and beverage outlets, and the iconic Palm Court.
Earlier this month, it was reported that the Barclays were considering a Saudi Arabian private investment company, Sidra Capital, to offload The Ritz. While the price offered for the 5-star hotel in London’s West End was not revealed, the brothers are believed to be asking for at least £750 million for the property.
Sidra has been trying to enter London’s hotel industry for a while. The company lost a bid to acquire Grosvenor House on Park Lane in 2018. It now owns many properties across the UK, including St. James’ Squares in the British capital and Kinnaird House near Trafalgar.
The company has also invested in buildings across Scotland currently given on lease to Sainsbury’s as well as a Travel Lodge near Terminal 5 of Heathrow Airport. It also manages various properties in the Netherlands, the US, and the UAE.
Speculations of the Barclays looking to sell The Ritz have been doing circles since last October when it was revealed that unsolicited bidders had approached the twin businessmen for the property. Sources also noted that the current owners of the luxury hotel might be ready to sell it if they receive a good offer.
The speculations of the potential sale were further fuelled by the fact that valuation for The Ritz was part of the property’s latest financial accounts. The estimated value of the property stood at about £800 million. It echoed the hotel’s freehold tenure, prime location not far from the Buckingham Palace, the brand name, the quality of the building, and the casino lease.
