Istithmar Hotels has completed the purchase of a majority stake in Mandarin Oriental, New York, the luxury five-star hotel which is part of the Time Warner Center in New York City.
Istithmar Hotels has purchased 73% of the property, buying 25% from Mandarin Oriental Hotel Group and 48% from a joint venture between Apollo Real Estate and Related. Related was also the developer of the hotel. The sale was announced on 21 December 2006 and the transaction has now been completed. The total value of the hotel for the purposes of this transaction is US$ 340 million.
Istithmar Hotels FZE purchased the stake through its wholly-owned subsidiary, Istithmar Columbus Centre Holding Company LLC. Istithmar Hotels FZE is part of Istithmar PJSC which is 100% owned by Dubai World, which is in turn wholly owned by the Government of Dubai.
Joe Sita, chief executive of Istithmar Hotels FZE, said, “The acquisition of a majority stake in the Mandarin Oriental hotel marks another important step forward for Istithmar Hotels in developing our portfolio of hotels.
“A major element of our strategy is to build a portfolio of luxury hotels in major global centres. Mandarin Oriental, New York is not just one of the finest hotels in New York City; it is one of the finest hotels in the world.”
The Mandarin Oriental, New York provides a stunning blend of modern design and oriental flair in the heart of Manhattan. Its 248 guest rooms and suites offer breathtaking views over Central Park and the City skyline, while the hotel’s service and amenities provide an unparalleled New York guest experience. The hotel, recipient of the prestigious Mobil Five-Star award for 2007, is located at Columbus Circle, ideally located near some of the city’s best shops, restaurants, performance centre and Central Park. Mandarin Oriental Hotel Group retains 25% equity in the hotel and has a long term management contract to continue operating the property as part of the brand’s portfolio.