Maritz Wolff Buys 50% Stake in Fairmont Hotel Group

Maritz, Wolff & Co. said Monday that it bought a 50% stake in Fairmont Hotel Management Co. and in three Fairmont hotels for $120 million from the hotel’s founding family, adding to the investment group’s portfolio of luxury hotels and resorts.

Los Angeles-based Maritz Wolff bought the stake from the Swig family of San Francisco. The purchase gives Maritz Wolff part ownership of Fairmont hotels in Dallas and New Orleans and in Fairmont’s flagship property in San Francisco. The three hotels combined have more than 1,800 guest rooms.

Maritz Wolff’s principal backers include John Scully, William Patterson, William Oberndorf and members of the Fisher family, who founded Gap Inc. The other 50% of Fairmont Hotel is owned by Saudi Prince Alwaleed Bin Talal bin Abdul Aziz Saud.

Maritz Wolff is adding the Fairmont stake to its interests in five Four Seasons hotels and the Ritz-Carlton in St. Louis, among others, as a strong economy has spurred more travel and boosted profits of high-priced hotels. The high cost of building such hotels has discouraged new competitors.

“We believe the partnership positions offered by the Swig Co. enable us to add to our relationship with Prince Alwaleed and complements our aim of building a top-tier hotel and brand-ownership portfolio,” said Lew Wolff, chairman of Maritz Wolff, in a statement.

Maritz Wolff and Prince Alwaleed were already partners in the San Jose Fairmont in San Jose.

Maritz Wolff is also a partner with the Hunt family of Texas in the Mansion on Turtle Creek in Dallas and in Rosewood Management Co., which operates 11 luxury hotels.