Today's event – Qatar has agreed to purchase one of London's most famous hotels, Grosvenor House. It is because the rich Gulf countries can speed up the purchase even though the energy imports block Doha 's neighbors.
The acquisition of Grosvenor House in London's prestigious Mayfair Park was agreed Tuesday with US private equity firm Ashkenazi Investment. The purchase price was not disclosed.
Ashkenazi did not respond to requests for comments as did the Qatar Investment Authority (QIA), a Qatar national wealth fund that purchases hotels through a hospitality unit in Katara.
Qatar has already bought Plaza Hotel, one of New York's most iconic buildings, for about $ 600 million.
"There will be another hotel acquisition in Europe soon," the source said.
Qatar has bought luxury hotels and luxury properties in the West over the past decade as part of a $ 300 billion sovereign wealth fund to diversify its oil and gas exports.
Qatar, the world's largest liquefied natural gas exporter, already owns the Savoy and Connaught hotels in London and the upscale Harrods stores.
QIA also invested in German automaker Volkswagen and London-based mining company Glencore. The total gross national treasury investment in the UK has exceeded £ 30 billion and is expected to increase by £ 5 billion over the next few years.
Qatar's foreign investment is expected to slow down after Saudi Arabia, the UAE, Egypt and Bahrain last year imposed sanctions on Qatar. The Doha government condemned terrorist support, claiming that the economic boycotting campaign was an attempt to undermine sovereignty.
The Qatari government has been forced to inject billions of dollars last year, but this year the economy was supported by strong oil and gas prices and its influence diminished.
Grosvenor House was built in the 1920s at Grosvenor House, former residence of Dukes Westminster in London's Grosvenor family.