Financial investors Apollo European Real Estate Fund have bought the hotel for an undisclosed amount from owners Château Élan Hotels & Resorts.
As part of an agreement, Fairmont is believed to have acquired a 20% stake in the resort and will takeover managing the 209-bedroom resort at the start of July under a long-term management contract. The property will be rebranded as a Fairmont hotel in the autumn.
The hotel will undergo a £10m refurbishment program with renovations including the guestrooms, public areas, meeting rooms as well as technology upgrades.
William Fatt, Fairmont's chief executive officer, said: "St Andrews is the acclaimed ‘home of golf' and we are pleased, to not only expand our presence in Europe, but also to increase our truly distinctive golf offerings through the addition of this resort."
Henk Evers, president and chief executive of Château Élan will continue to oversee the planning application for the resort's second-stage development which involves an investment of £20m in new accommodation.
By Emily Manson