Housing Slump Hits Saudi Prince

June 14, 2009— -- The catastrophic drop in home values has impacted everyone – even one of the world's wealthiest, most powerful men.

Prince Bandar bin Sultan, former Saudi ambassador to the United States and now his country's security chief, insists his mammoth ski chalet in Aspen is worth less than half the price he wanted for it in 2006, when he tried to unload it for a reported $135 million.

The mountaintop property, known as Hala Ranch, includes a 15-bedroom, 16-bathroom main house, with a private barbershop and beauty salon; two cabins; and a 6,000-square-foot garage, with car wash and gas pumps. It is reportedly run by a staff of twelve.

According to Bandar's lawyer, Hala Ranch today is worth a mere $62 million. He proposed the figure after a county tax assessor concluded the property was worth $113 million. Bandar's lawyer helped convince him to drop that to $88 million.

While Bandar's net worth may have taken a hit, his cash flow will improve: That tweak in assessed value will shave roughly $100,000 off Bandar's annual property tax bill, according to the Aspen Daily News, which first reported the assessment battle.

Bandar, considered one of the most influential men on the planet, is as familiar with controversy as he is with power.

With former FBI Director Louis Freeh as his personal attorney, Bandar has successfully defended himself against claims he took $2 billion in bribes from a British company looking to sell fighter planes to Saudi Arabia.

Recently, a flap erupted not over Bandar himself but a guest allegedly swimming in his Riyadh swimming pool during a 2004 stay: then-CIA director George Tenet. According to the story, late one night while staying at Bandar's mansion in the Saudi capital, Tenet stripped to his underwear and waded into his host's pool with a bottle of scotch. The story was recounted by sources to journalist Patrick Tyler and published last in Tyler's book, "A World of Trouble." Tenet has denied the story.