Aareal Bank has provided part of the USD 700 million in total financing for the purchase of the luxury hotel chain Raffles International Limited. The purchaser is the international private investment company Colony Capital, LLC. The purchase price totalled roughly USD 1 billion.
Aareal Bank was one of three mandated lead arrangers, along with Credit Suisse First Boston and Calyon. Aareal Bank's share in the high-level deal underlines its international expertise and expansion into Asia.
Previously Asian-run, Raffles International Limited will now be wholly owned by Los Angeles-based Colony Capital, LLC. There are plans to expand the portfolio, but no changes are to be made to the brand name, staff, or service. Raffles International operates and manages over 40 hotels under the hotel brands Raffles Hotels & Resorts and Swissôtel Hotels & Resorts. The luxury hotel chain's flagship is the legendary Raffles Hotel in Singapore. Just as famous are the Raffles Hotel Vier Jahreszeiten, Germany, the Raffles L'Ermitage Beverly Hills, USA and the Raffles Le Montreux Palace, Switzerland.
Source: Aareal Bank