Singapore's iconic Raffles Hotel has been acquired by Qatari Diar, the real estate arm of the Qatar Investment Authority, for US$275m (£181m, €206m, S$384m).

The arrangement also sees Qatari Diar injecting US$467m (£307m, €350m) into current owner Toronto-based Fairmont Raffles, in exchange for a 40 per cent stake in the hotel chain. This, plus US$105m (£69m, €79m) in hotel management contracts, brings the overall cost of the deal to US$847m (£557m, €635m). The 103-room, 123-year old hotel - famed for its colonial grandeur, its legendary former guest list and the creation of the Singapore Sling cocktail - is expected to undergo a programme of refurbishment which it is said will include the addition of a further 78 rooms and a revamp to its retail and leisure facilities.

Fairmont Raffles operates around 100 hotels in 24 countries - of which the Singapore property is one and London's Savoy Hotel another - under the Raffles, Fairmont and Swissotel brands. Image courtesy of Bjørn Christian Tørrissen