Fairmont Hotel in St Andrews sold for £32m

Property investor Kennedy Wilson Europe Real Estate has agreed to buy the Fairmont Hotel in St Andrews for £32.4 million in cash.

The 209-room hotel and resort, set within 520 acres of land, is operated by Fairmont Hotels and Resorts under a management agreement running until 2031 and has been acquired from privately-owned SABD Holding.

The deal marks the second luxury hotel purchase for Kennedy Wilson Europe, following the €29.8m (£23.9m) acquisition of Dublin’s Portmarnock Hotel in June.

President and chief executive Mary Ricks said: “This is an excellent addition to our portfolio – a high-quality and well-managed hotel, which represents our second hotel transaction within two months.

“Furthermore this asset provides a number of good opportunities to leverage our extensive asset management expertise through which we expect to be able to add significant value over the medium term.”