The iconic Ritz hotel, famous for its afternoon tea and opulent atmosphere, has been sold for the third time in its 114-year history. This transaction, occurring during the global coronavirus pandemic, has sparked controversy and raised eyebrows.
The new owner is a Qatari investor, whose identity remains undisclosed. This deal came to light just as the Ritz closed its doors for the first time in its long history, reflecting the devastating impact of the pandemic on London’s hospitality sector. The Qatari buyer expressed their pride in acquiring such a landmark, while a representative for the Barclay brothers, who previously owned the hotel, vehemently denied the sale had taken place.
This denial is just one more twist in the complex saga of the Barclay family. The billionaire twins, Sir Frederick and Sir David, have a fortune estimated at $3.7 billion, built upon a diverse empire that includes their very own island castle in the English Channel. Their children, however, are embroiled in a bitter feud, with Sir Frederick and his daughter Amanda filing legal action against their nephews, Aidan, Howard, and Alistair, accusing them of bugging family meetings held at the Ritz.
Adding fuel to the fire, Sir Frederick had previously declared he would sue anyone selling the hotel for less than £1 billion ($1.2 billion). While the sale price remains undisclosed, sources claim the Qatari investor paid somewhere between £800 million and £1 billion ($975 million and £1.2 billion). The Ritz was first put on the market in October 2019 for £800 million ($975 million), attracting interest from various parties like Saudi Arabia’s Sidra Capital and Bernard Arnault’s LVMH.
The swiftness of the sale, completed in less than five months amid a global economic crisis, has raised suspicions. Sir Frederick’s spokesperson criticized the deal, suggesting it was rushed through during the pandemic to avoid scrutiny.
A Qatari Empire in London?
The news of a Qatari investor acquiring the Ritz might come as no surprise to those familiar with London’s real estate landscape. The Qatar Investment Authority already owns iconic landmarks like Harrods, Canary Wharf, and has a hand in projects such as the Shard and the Olympic Village.
However, the sale of the Ritz is particularly interesting given the history between the Barclay brothers and the Qatar Investment Authority. Just a few years ago, the brothers were embroiled in a legal battle over ownership of three other London landmarks: Claridges, the Berkeley, and the Connaught. Ironically, the Qatar Investment Authority emerged victorious, securing majority ownership of these properties.
With the Ritz now under Qatari ownership, attention turns towards the future of other assets owned by the Barclay brothers. Speculation is already swirling around the Telegraph Newspaper Group, suggesting it might be the next target for acquisition.
