The Indian conglemerate, which is run by Subrata Roy, paid £470m in cash for the hotel, which RBS took control of in 2003 when Le Meridien, the previous hotel owner, fell into administration. RBS owned the long lease, and the hotel was earmarked for sale in a bid to shrink the bank’s balance sheet.
Sahara fought of competition from two other interested parties to secure the deal, including developers the Candy brothers, Sahara now intends to add restaurants and a nightclub to this iconic hotel.
The Grosvenor, which is currently run by Marriott International, would be jointly managed by Sahara and Marriott. It has 420 rooms, 74 suites and 27 conference rooms, with unique views that overlook Hyde Park.
Roy said: “We are extremely happy to announce Grosvenor House joining the Sahara family. The valuation of the hotel, three years back was more than 1 billion pounds.
“The valuation, even today is quite high but due to highly satisfactory due diligence by the Royal Bank of Scotland who owned the property and after long and strict negotiations, we have purchased it for £470m.
“This acquisition is a part of the major expansion plans of the group. In addition to the acquisition of Grosvenor House, London will be the gateway for Sahara to introduce some of its new business ventures, internationally.”