Saudi prince buys Savoy

The Savoy Hotel was bought today by Saudi billionaire Prince Alwaleed bin Talal.

The world's fourth richest man teamed up with Britain's HBOS, owner of Halifax, to buy the hotel from a group of Irish investors.

The sale marks the second change in ownership for the 263- room hotel in nine months. Today's deal hands management to Canadian firm Fairmont Hotels & Resorts, in which the prince owns a stake, prompting a change in name to "The Savoy, a Fairmont Hotel."

The new owners gain control of the Savoy Grill, a favourite with the City and among politicians. No sale price was disclosed, but it is thought to be between ?230million and ?250 million.

The prince, a nephew of King Fahd with an estimated ?12billion fortune, said: "As a long-term investor in Fairmontwe believe our joint venture's focus on European luxury hotel acquisitions is an excellent strategic choice for growth."

Built in 1889 by Richard D'Oyly Carte, founder of the Gilbert and Sullivan opera company, The Savoy is one of the Strand's landmarks. Known for hosting society events, it has long been a favourite with illustrious guests including Winston Churchill, who took up temporary residence there as prime minister during the Second World War. Quinlan Private, the consortium which sold The Savoy, bought it in May last year in a ?750 million purchase of the Savoy Group from US venture capitalist the Blackstone Group.