Beleaguered bank Credit Suisse (CSGN.S) is considering disposing of its renowned Savoy Hotel, located on Paradeplatz in the centre of Zurich’s financial district, it said on Thursday.
The Swiss bank constantly evaluates 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 two-century-old hotel shut down this year to go through a major refurbishment and will reopen in 2024 as the Hotel Mandarin Oriental Savoy Zurich. The finance blog Inside Paradeplatz, which initially reported the news, disclosed that the building could be valued at 400 million Swiss francs ($408 million).
Credit Suisse has had to obtain capital, suspend share buybacks, reduce its dividend and revamp management after incurring a loss of more than $5 billion from the failure of investment firm Archegos in March last year, when it also had to halt client funds tied to collapsed financier Greensill.
Buy Crypto NowIt has been pursuing probable asset and business sales in a bid to restore profitability. A source with knowledge about the situation said the sale was unrelated to a strategic review due to be submitted on Oct. 27.
($1 = 0.9795 Swiss francs)
