Canada-based Fairmont Hotels & Resorts has confirmed it has signed an agreement to manage the Savoy if the landmark London hotel is bought by Prince Alwaleed.
The Saudi prince, together with Bank of Scotland Corporate, is in discussions to buy the Savoy from owner Quinlan Private for a sum understood to be in the region of £200m.
Fairmont said: "Subject to the successful sale of the property, Fairmont will assume the management responsibilities of the Savoy in January 2005."
Chief executive William Fatt added: "The addition of the Savoy, our first hotel in Europe, will provide the ideal platform for further expansion in Europe."
Plans are in place to invest £27m in renovations at the Savoy, a project Fairmont looked forward to completing together with the property's new owner.
Fairmont manages 82 hotels with more than 33,000 bedrooms between them in the USA, Canada, Mexico, Bermuda, Barbados and the United Arab Emirates.
Buy this week's Caterer magazine for more industry news and analysis