20 Aug 2014
Beverley Hills-based investment group buys luxury Fairmont St Andrews hotel in Scotland for £32m
BY Chris Dodd
Luxury hotel offering Fairmont St Andrews has been sold to a Beverley Hills-based property investment group for around £32m (US$53m, €40m) as Scotland continues to thrive as a hive of activity in the sector.
The 209-bedroom hotel and golf resort, located in picturesque Fife, was bought by Kennedy Wilson Europe Real Estate, which also purchased Dublin’s Portmarnock Hotel for £23.9m (US$39.7m, €29.9m) back in June.
The initial development of the St Andrews hotel, created in 2001, came in at around £50m (US$83.2m, €62.6m) and was the project of American businessman Don Panoz.
It then came under the stewardship of New York private equity firm Ares Management, with Fairmont Hotels and Resorts taking over its management on a 25-year contract from 2006.
As it stands, the hotel is situated within 520 acres of land, while the area also has planning permission for the creation of new holiday homes within the grounds.
Fairmont has revealed that it will work closely with the new owners to ensure an easy transition process, with the change of ownership not impacting on the hotel’s day-to-day activities.
Scotland has seen an increase in leisure hospitality interest in the past few months, with hotel occupancy rates in Glasgow peaking because of the Commonwealth Games.
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