Gruppo Statuto has signed a binding agreement to buy the five-star Mandarin Oriental Paris from Mandarin Oriental International for a consideration of €205 million.
The pair entered into exclusive negotiations at the start of the year. Mandarin Oriental is expected to retain a 50-year term management agreement to manage and brand the 135-room hotel. As part of the transaction, there are plans for a prospective renovation of €50 million.
Completion of the transaction is expected upon the outcome of the union consultation required by French law.
What they said
Laurent Kleitman, Group CEO of Mandarin Oriental Hotel Group, said: “Since opening in 2011, Mandarin Oriental, Paris has been one of the leading luxury hotels in the city and is a designated Palace hotel. We look forward to working with the Statuto Group, which is also the owner of Mandarin Oriental, Milan, in continuing to deliver the award-winning service and luxury experiences for which Mandarin Oriental is renowned."
Patrick Saade, head of the global hotels desk at JLL,which provided guidance and advisory for both the buyer and the seller, said: “Mandarin Oriental, Paris is part of an outstanding brand, enjoys an exclusive location on Saint Honoré and benefitted from high investor demand. As the hospitality industry continues to gain prominence and consumer preferences evolve, hotels present themselves as a focal point for investors looking to invest their capital in the increasingly dynamic real estate market.”