Investment Group Agrees to Acquire The Savoy Group

5th Apr 2004

A group of investors led by Quinlan Private, a leading international
property investment and advisory group, has agreed to acquire The Savoy
Group from The Blackstone Group and Colony
Capital LLC for a consideration of GBP750 million or
approximately US$1.37 billion. The transaction will close on or before May
8. Following the acquisition, Quinlan Private looks forward to working
with the management team of The Savoy Group and each hotel will retain its
distinct identity. The Savoy Group was acquired by Blackstone and Colony in 1998 for GBP520
million. In the five years since that acquisition, Blackstone and Colony
have re-invested in improving and upgrading The Savoy Group hotels and

Derek Quinlan, Chairman of Quinlan Private, commented, “We are delighted
to announce an agreement to acquire The Savoy Group. Our investment will
respect the iconic status of the Group. The acquisition provides Quinlan
Private with a unique opportunity to extend its hotel portfolio and use
its experience and resources to enhance the international standing of the
hotels comprising The Savoy Group.”

John Kukral, President of Blackstone Real Estate Advisors said “We, along
with our partners Colony, are pleased to sell The Savoy Group to Quinlan
Private. We would like to give our thanks to the great management team led
by Geraldine McKenna and all the employees of the company for making this
investment a success for ourselves and Colony. Through their continued
dedication to excellence and under the stewdardship of Quinlan Private, a
long term investor in the hospitality industry, the assets are poised to
take advantage of the improving tourism and travel markets”. 

The Savoy Group is a full service, super-luxury hotel group with 772
bedrooms. The Group comprises four of London’s leading super-luxury hotels
(The Berkeley, Claridge’s, The Connaught and The Savoy) and over 50% of
the super-luxury hotel rooms in the city. Each of the Group’s hotels is
famous for its distinct character and unique style. 

Quinlan Private, Ireland’s first independent private client advisory
group, was founded in 1989. Quinlan Private has an established competence,
as principal and advisor, in originating, structuring, financing,
developing and managing a diversified portfolio of prime assets. These
assets include commercial office blocks, shopping centres, car-parks and
hotels throughout Europe and North America. Its current property portfolio
comprises approximately 140 assets. It has a proven distribution capacity
and works with major international banking groups to syndicate and place
private equity in property transactions.


Recent transactions, originated and executed by Quinlan Private, include
the acquisition of the Four Seasons Hotels in Milan, Budapest and Prague.
Quinlan Private recently acquired a range of commercial property assets
located in Hungary and the Czech Republic. 

The Blackstone Group, a private investment bank with offices in New York,
London and Hamburg, was founded in 1985. Blackstone Real Estate Advisors
has raised four funds representing approximately US$4 billion in total
equity. The group has made over 100 separate investments in hotels,
offices and other commercial properties with a total transaction value in
excess of US$15 billion. In addition to real estate, The Blackstone
Group’s core businesses include Private Equity Investing, Corporate Debt
Investing, Marketable Alternative Asset Management, Mergers & Acquisitions
Advisory, and Restructuring & Reorganization Advisory.

Since 1991, Colony Capital has invested over US$10 billion in over 5,000
assets through various corporate, portfolio, and complex property
transactions. Colony has a staff of over 100 and is headquartered in Los
Angeles, with offices in New York, Paris, Rome, London, Madrid, Beirut,
Hawaii, Singapore, Tokyo, Taipei, Shanghai and Seoul.


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