Mandarin Oriental is selling its Washington DC hotel to private equity firm Henderson Park for $139 million.
The deal is scheduled to complete on 8 September and Mandarin Oriental will no longer operate the property.
Mandarin Oriental opened the 373-room hotel in 2004.
Last year Henderson Park bought a portfolio of 12 Hilton hotels in the UK and Ireland.
What they said
James Riley, Group CEO, said: “Over the last 18 years Mandarin Oriental has positioned this hotel as a market leader in the city. During this period however, the Group's portfolio has developed significantly with many new, unique properties across the world that are more in line with our long-term vision for the brand than this asset.
“Today, with our track record in creating market-leading hotels, the Group's strategy for expansion is focused on growing the management business with brand-defining properties. With strong interest from investors in this property, the time was right to initiate a sales process which has now been successfully concluded.”
"The United States is a key market for Mandarin Oriental. The Group has announced new hotel developments in Boca Raton, Grand Cayman and Honolulu as well as Residence projects in New York and Beverly Hills and further exciting developments are expected in the coming months," Riley added.