The iconic Ritz hotel, known for its legendary teas and opulent setting, has been sold for a third time in its 114-year history. This deal, shrouded in secrecy and occurring amidst the global coronavirus crisis, has sparked controversy and a family feud.
The Qatari investor who acquired the property remains unnamed, but their purchase comes at a time when London’s hospitality sector is reeling from the impact of the pandemic. The Ritz, known for its enduring elegance, had shut its doors for the first time ever just days prior to the sale.
The Barclay brothers, the previous owners, have vehemently disputed the transaction. A spokesperson for Sir Frederick Barclay, one of the twin billionaires, stated that they were unaware of the sale and had not given their consent.
This situation is further complicated by an existing family feud. Sir Frederick and his daughter, Amanda, are embroiled in a legal battle with Sir David’s sons, Aidan, Howard, and Alistair, alleging that they were secretly recording their family meetings at the Ritz.
Adding fuel to the fire, Sir Frederick had previously declared that he would sue family members if the hotel was sold for less than £1 billion ($1.2 billion). Despite the lack of an official price, sources close to the deal reveal that the Qatari buyer paid between £800 million and £1 billion ($975 million and £1.2 billion).
A Kingdom of Luxury: Qatari Acquisitions in London
The news of a Qatari buyer acquiring the Ritz may surprise few in London, a city where Middle Eastern investors frequently snap up iconic landmarks.
The Qatar Investment Authority already boasts a formidable portfolio, owning Harrods, London’s most famous department store, and Canary Wharf, its financial district.
Their influence extends further, with Qatari banks and developers having financed the construction of the Shard, London’s tallest building, and Qatari Diar owning the Olympic village.
However, the sale of the Ritz to a Qatari investor is particularly interesting, given the previous legal battles between the Barclay brothers and the Qatar Investment Authority.
In the years between 2011 and 2015, the brothers fought fiercely over the ownership of three other London landmarks: Claridges, the Berkeley, and the Connaught, with the Qatar Investment Authority ultimately emerging as the majority owner.
The Future of the Barclay Empire: A Tale of Two Billionaires
With the sale of the Ritz, attention is now focused on other assets owned by the Barclay brothers, particularly the Telegraph Newspaper Group. Speculation is rife about the future of this media empire, as investors circle the brothers’ remaining holdings.
This sale and the subsequent family feud highlight the complex world of billion-dollar deals and the challenges of navigating a legacy within a family dynasty.
The Ritz, a symbol of luxury and history, has become embroiled in a drama that is both fascinating and deeply personal. As the dust settles on this unprecedented sale, only time will tell what awaits the Barclay brothers and the future of their iconic assets.
