Fairmont Hotels completes Copley Plaza Boston buyout
Fairmont Hotels & Resorts has completed the acquisition of the remaining 50% equity interest in The Fairmont Copley Plaza Boston from entities controlled by Prince Alwaleed Bin Talal Bin Abdulaziz Al Saud of Saudi Arabia. The purchase price for the equity interest was approximately $23 million and was satisfied by the issuance of one million common shares. Existing secured debt of approximately $66.5 million on the property will remain in place.
As a result of this transaction, Prince Alwaleed now holds approximately 4.9% of FHR’s issued and outstanding shares. Commenting on the closing, Prince Alwaleed said, ‘We are pleased with this transaction as it increases our investment in FHR. We intend to be a long-term investor and we look forward to our continued relationship with FHR.’
FHR purchased the initial 50% equity interest in the hotel in July 2001 and at that time committed to a substantial guestroom renovation and upgrade. The renovation program, which began in November 2002, is expected to be completed by early 2004.