Credit Suisse looks to sell Zurich's Savoy Hotel

Mandarin Oriental International

06/10/2022 08:52

ZURICH, Oct 6 (Reuters) - Beleaguered bank Credit Suisse
 CSGN.S  is looking to sell its famed Savoy Hotel, located on
Paradeplatz in the centre of  Zurich's financial district, it
said on Thursday. 
    The Swiss bank regularly reviews its property portfolio as
part of its global real-estate strategy, a spokesperson said. 
    "As part of this process, the bank has decided to start a
sales process for the Hotel Savoy," she said. "We will carefully
assess all offers and potential investors and communicate any
decision in due course."
    The almost 200-year-old hotel closed this year to undergo a
major refurbishment and will reopen in 2024 as the Hotel
Mandarin Oriental Savoy Zurich. 
    The finance blog Inside Paradeplatz, which first reported
the news, reported the building could be worth 400 million Swiss
francs ($408 million).
    Credit Suisse has had to raise capital, halt share buybacks,
cut its dividend and revamp management after losing more than $5
billion from the collapse of investment firm Archegos in March
2021, when it also had to suspend client funds linked to failed
financier Greensill.
    It has been working on possible asset and business sales in
a bid to return to profitability. A source familiar with the
situation said the sale had nothing to do with a strategic
review due to be presented on Oct. 27.
    ($1 = 0.9795 Swiss francs)
 (Reporting by Noele Illien
Editing by Mark Potter)
 ((Noele.Illien@thomsonreuters.com; +41 41 528 39 73;))