Kingdom Holding Company (KHC), the investment firm chaired by Saudi billionaire Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, said it has completed the sale of its key stake in the historic Fairmont San Francisco Hotel for about $200 million.

As per the agreement inked with the consortium led by by an affiliate of top investment management corporation Oaktree Capital Management and real estate investor Michael Rosenfeld and his Woodridge Capital Partners, KHC will retain a 28 per cent interest in the hotel.

The hotel located atop Nob Hill was purchased from Maritz, Wolff & Company, which acquired its stake in the hotel in 1998 in partnership with Kingdom Holding.

Fairmont Hotels & Resorts, based in Canada, will continue to manage The Fairmont San Francisco which opened in 1907. KHC owns a stake of 35 per cent in Fairmont Hotels and Resorts.

In his comments, Prince Alwaleed said, “These transactions mark yet another step for KHC towards the realization of the value of its investments.”

The Beaux Arts-style building was designed by New York architectural firm McKim, Mead & White and Julia Morgan. Over its 105-year history, Fairmont San Francisco  has been home to many US presidents, world leaders and entertainment stars.

John Brady, the head of global real estate for Oaktree Capital Management, said: 'We look forward to joining Oaktree’s significant real estate experience and an investor base that includes prominent public and corporate pension funds together with longstanding relationships with Woodridge, Fairmont Hotels and Resorts, Kingdom Holding and our new partners – the hotel’s outstanding employees and the City of San Francisco, one of the truly great cities of the world.'

'With 591 guest rooms and suites and over 55,000 sq ft of conference and function space, the hotel is renowned for its three restaurants and lounges. Its location offers spectacular views of the city and the Bay, and is the only spot in San Francisco where each of the city’s cable car lines meet,' he added.

Michael Rosenfeld said, "The Fairmont San Francisco hotel’s rich history, elegance and beauty make it a one-of-a-kind property that cannot be replicated today. We are excited to be in such a distinguished partnership with a property that symbolizes the great city of San Francisco.”

Fairmont Raffles is an integral component of KHC’s diverse hotel portfolio.-TradeArabia News Service