Hogan Lovells advises Kingdom Holding Company in £600m+ Savoy hotel refinancing

Hogan Lovells has advised Kingdom Holding Company in the refinancing of the Savoy hotel in London valued in excess of £600m.

Kingdom, which is chaired by HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud of Saudi Arabia, initially acquired the luxury hotel in 2005 in a 50/50 joint venture with Prestonfield Ltd, an entity controlled by Bank of Scotland and now part of Lloyds Banking Group.

The Savoy underwent an intense physical restoration from 2008 to 2010 — the first in its 125-year history — at a cost of £230m. The hotel has since attracted institutional capital from two leading European lending organisations — Crédit Agricole Corporate and Investment Bank and DekaBank Deutsche Girozentrale — to refinance the Bank of Scotland’s original senior debt.

The lending institutions jointly provided a new five-year £200m senior facility, with Prestonfield continuing to provide mezzanine financing and own the landmark hotel alongside Kingdom Holding Company on a 50/50 basis.

The Hogan Lovells financing team was led by London corporate finance partner Colin Craik.