(Bloomberg) -- Credit Suisse Group AG is exploring a sale of the Mandarin Oriental Savoy Zurich.
“Credit Suisse reviews its property portfolio on a regular basis as part of its global real-estate strategy,” according to Simone Meier, a bank spokeswoman. “As part of this process, the bank has decided to start a sales process for the Hotel Savoy building. We will carefully assess all offers and potential investors and communicate any decision in due course.”
The bank has been working with an adviser to solicit interest in the storied hotel, formerly known as the Savoy Hotel Baur en Ville, said people with knowledge of the matter, requesting anonymity discussing information that isn't yet public. The hotel's valuation couldn't immediately be learned.
The news was first reported by Swiss finance blog Inside Paradeplatz, which also wrote that the hotel could be worth around 400 million Swiss francs.
The bank announced in 2020 that the hotel, opened almost two centuries ago by Austrian baker Johannes Baur, would undergo extensive renovations, closing its doors from early 2022 through mid-2024. The hotel's total number of rooms is set to shrink to 80 from 104, resulting in more spacious accommodation, Credit Suisse said at the time.
The bank said it was a “principal shareholder” of the building and called the renovation “a reflection of its commitment to Zurich as a location for five-star-plus hotels, as well as to the collection of historic buildings at Paradeplatz.”
Credit Suisse is working toward a strategic review on Oct. 27 that includes asset sales as it seeks ways to drive down costs and restore profitability.
Read more: Credit Suisse Working on Asset Sales as Part of New Strategy
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