Reuben brothers take control of Grosvenor House
The billionaire Reuben brothers have taken control of the five-AA-star, 494-bedroom Grosvenor House hotel, after acquiring a £305m loan from the Bank of China.
Recently listed at number five on The Sunday Times Rich List 2015 with a fortune of £9.7b, David and Simon Reuben have bought the loan alongside a second $465.85m (£304.14m) loan for the Plaza and Dream Downtown hotels in New York.
The deal came about after administrators were appointed in March when the Bank of China pulled the plug on the hotel's owner, Sahara Grosvenor House Hospitality. Subrata Roy, the Indian tycoon who heads up Sahara, was jailed in early 2014 following his arrest following the failure of a bond scheme.
Grosvenor House will continue to be managed under a 37-year lease with Marriott International, who operate it under its luxury JW Marriott brand. The hotel was sold to Roy for £470m by RBS in 2010.
The Reuben brothers have entered into a four-month standstill on the loans, allowing Roy the opportunity to resolve his financial difficulties.
Alongside investments in property, data centres, race courses, technology and media, the Reubens own a portfolio of boutique hotels, mostly in the south east of England, including the Lingfield Park Marriott Hotel & Country Club. They have entered into a 50:50 joint venture with Park Plaza Hotels to develop a hotel under the Art'otel brand in Hoxton, London, and hold a 7% stake in luxury group Belmond.
The brothers also own the Wellington Pub Company, which has approximately 850 tenanted pubs, managed on their behalf by Criterion Asset Management.
Grosvenor House up for sale after going into administration >>
Grosvenor House sold for £470m
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