2 hours ago
Qatar has agreed to buy Grosvenor House, one of London's most popular hotels, as energy revenues help the rich country in the Gulf to progress with the redemption market despite blockades imposed by neighboring countries in Doha.
The acquisition of Grosvenor House, located in London's prestigious Mayfair Park, was agreed on Tuesday with the seller, the US company of private equity firm Ashkenazi Investment, a source familiar with the contract. The purchase price was not disclosed.
Ashkenazi did not respond to the request for comment as well as the Qatar Investment Authority (QIA), the Qatar's mutual fund that buys the hotel with its Qatari hospitality.
Qatar has already bought Plaza Hotel, one of the most iconic architecture icons in New York, for about $ 600 million.
"There is another hotel pick-up in Europe that will soon arrive," the source said.
Qatar has bought luxury hotels and luxury real estate in the West over the past 10 years as part of its $ 300 billion sovereign wealth fund to diversify oil and gas exports.
Qatar, the world's largest exporter of liquefied natural gas, already owns the hotels Savoy and Connaught in London and the luxurious Harrods store.
The Qatar Investment Administration (QIA) has also invested in a German car manufacturer Volkswagen and the London mining div Glencore. Total UK sovereign investments in the UK amount to more than £ 30 billion and they want to increase by £ 5 billion over the next few years.
Qatar's investment party is expected to slow down after Saudi Arabia, the United Arab Emirates, Egypt, and Bahrain last year imposed sanctions on Qatar, accusing the Doha refusal to support terrorism, saying the economic boycott attempted to undermine of its sovereignty.
Qatar was forced to inject tens of billions of dollars into the economy last year, but this year said the province's impact was down because its economy was supported by strong oil and gas prices.
The Grosvenor House was built in 1920 at Grosvenor House, former residence of the Dukes Westminster, Grosvenor family in London.