Paris's legendary Hotel de Crillon sold to Saudi royal

Monday, 27 December 2010 00:05 - - {{hitsCtrl.values.hits}}

Groupe du Louvre, a unit of Starwood Capital, said it had sealed a deal to sell the Hotel de Crillon in Paris to a Saudi investor, ending a long-running saga over the fate of one of the world's landmark hotels.

The price paid by the buyer, described as an "eminent" member of the Saudi royal family, was not disclosed.

A source close to the matter pegged the pricetag for the luxury hotel located near the Champs Elysees on the Place de la Concorde at around €250m ($328.4m).

Groupe Concorde, the prestige hotel unit of Groupe du Louvre, will continue to operate the hotel over a six to 12 months period on behalf of the new owner, the statement said.

In April, a French court ruled that Saudi-backed JJW Hotels & Resorts would have to pay €100m to Starwood Capital to settle a dispute involving the aborted sale of Le Crillon to JJW.

Starwood Capital took on Le Crillon as part of its acquisition of Taittinger's hotel and champagne empire in 2005.

The venue was built in 1758 as a government building after being commissioned by King Louis XV.