LONDON (Bloomberg) ? Saudi Prince Alwaleed bin Talal, the world?s fourth-richest man, and HBOS Plc, Britain?s fourth-biggest bank, agreed to buy London?s Savoy Hotel from a group of Irish investors for an undisclosed sum.

Fairmont Hotels & Resorts Inc., in which Alwaleed owns a stake, will operate the 263-room hotel overlooking the Thames river, Toronto-based Fairmont said in a statement.

The Savoy is the second European hotel to be acquired and managed by the trio after they bought Monaco?s Monte Carlo Grand hotel in December. The partnership allows Fairmont, which oversees 83 properties including New York?s Plaza hotel, to quicken the pace of its expansion in Europe, the company said.

?It?s a great addition to the portfolio of European hotels that we?re building,? Ramsey Mankarious, an adviser to Alwaleed, said in an interview from his office in London.

The buyers will invest about ?30 million ($56 million) to renovate the hotel, Mankarious said, declining to comment on the price. In September, he said in an interview the Saudi Prince may spend about ?200 million buying the Savoy to expand his European luxury hotel business.

Alwaleed, the largest shareholder in Citigroup Inc., has a fortune worth $21.5 billion, according to Forbes magazine. The 47-year-old prince owns stakes in businesses ranging from Walt Disney Co. to Four Seasons Hotels Inc.

The Savoy hotel was built in 1889 and is located between the City financial district and London?s West End. Guests have included Winston Churchill, British prime minister during the Second World War, who permanently reserved the Savoy?s ?River Suite? overlooking the Thames, according to the hotel. Quinlan Private, an Irish real estate investor, bought the Savoy and other London hotels including Claridge?s from Blackstone Group LP for ?750 million in May. In September, Quinlan said it had started talks with Alwaleed, HBOS and Fairmont.

The Dublin-based firm was founded in 1989 by Derek Quinlan, a former Irish tax official. It owns 140 real estate assets, including offices, malls and car parks as well as hotels, in Europe and North America, it said at the time it bought the Savoy Group.

?As a long-term investor in Fairmont and Fairmont hotel properties, we believe our joint venture?s focus on European luxury hotel acquisitions is an excellent strategic choice for growth,? Prince Alwaleed said.