Billionaire Guo’s Fosun Said to Weigh Grosvenor House Hotel BidVinicy Chan
Fosun International Ltd., controlled by Chinese billionaire Guo Guangchang, is weighing a bid for the five-star Grosvenor House hotel in London, a person with knowledge of the matter said.
The Shanghai-based company began looking at the hotel last year, said the person, who asked not to be identified as the deliberations are private. Deloitte LLP, the administrator for the hotel’s owner, is seeking about 500 million pounds ($762 million) for the property, people with knowledge of the matter said March 3.
Fosun, which agreed last year to purchase French resort operator Club Mediterranee SA, has been stepping up overseas real estate acquisitions as it seeks steady long-term returns. In the past year, it has agreed to buy office buildings in Tokyo and Sydney, including Citigroup Center in the Japanese capital, after purchasing New York’s One Chase Manhattan Plaza for $750 million in 2013.
Deloitte was appointed earlier this week to sell the Grosvenor House hotel after Sahara India Pariwar, the Indian financial services company controlled by jailed businessman Subrata Roy, defaulted on loan agreements with Bank of China Ltd. secured against three luxury hotels in the U.S. and U.K. The hotel, which has 420 rooms, is managed by Marriott International.
Fosun bid about 400 million pounds for the property last year, before it went into administration, according to the person. It hasn’t made a final decision about whether to proceed with a fresh offer and no deal may result, the person said. Fosun declined to comment in an e-mailed response to Bloomberg News queries.
Guo, whose company controls stakes in Greek jewelery maker Folli Follie SA and Italian suitmaker Raffaele Caruso SpA, has a net worth of $5.3 billion, according to the Bloomberg Billionaires Index.
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