That whole thing about the Mandarin Oriental sale, fact or fiction? Yeah, never mind.
The deal is in contract and is expected to close in February. A 73 percent share of the Time Warner Center hotel has been sold to Istithmar. According to the release from Mandarin Oriental International Limited, the luxury hotel is worth $340 million.
That puts the average room price at $1.37 million, which exceeds the $1.05 million per room that the W Hotel Union Square sold for in October (but less than the $1.4 million to $2 million range that was floating about last week). The Dubai-based Istithmar bought the W, too.
Mandarin Oriental will retain 25 percent of the Mandarin Oriental Hotel, down from 50 percent. And Apollo Real Estate and the Related Companies, which together once owned 50 percent as well, will now hold a (very) minority share. Mandarin will continue to manage the hotel under a long-term contract.
- John Koblin