Sahara Grosvenor House Hospitality, the owner of Grosvenor House hotel in London's Mayfair, has exited administration following a refinancing deal with the billionaire property investors the Reuben brothers, according to Property Week.
The five-AA-star, 494-bedroom hotel's debts were taken on by the Reuben brothers' property company last year, after they took over the loans from Bank of China.
JLL Hotels & Hospitality Group was appointed to sell the hotel after the appointment of administrators in March 2015. The deal with the brothers now lowers the likelihood of a sale.
It was previously sold by RBS in 2010 for £470m to Sahara Grosvenor House Hospitality, operated by Marriott International under the JW Marriott brand.
Marriott has since invested £142m in the hotel's restoration. In July last year, Grosvenor House revealed a £8m renovation plan of the hotel's public spaces.
In November 2016, a $1.15b (£930m) bid for the hotel was accepted by the Sahara Group but required permission from administrator Deloitte before it could progress. A deal was also in the pipeline with the Qatar Investment Authority, but it pulled out of negotiations in September.
Subrata Roy who heads up Sahara was arrested in India in 2014 after he was accused of failing to refund almost £4b to 30 million small investors in a bond programme that was ruled to be illegal. Roy, who is being held in a prison in Delhi, and Sahara have denied the charges and say the cash has been repaid.
The hotel opened in 1929. Today it sells around 160,000 room nights and houses JW Steakhouse & Terrace, Corrigan's Mayfair, the Park Room & Library, Red Bar, Bourbon Bar and Park Lane Market.
The Reuben brothers were unavailable for comment at the time of publishing.
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