Mandarin Oriental Joint Venture to Acquire Hotel Ritz, Madrid

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The 167-room Hotel, which first opened in 1910, is located within an exclusive residential area close to Madrid’s financial and commercial district and a number of the city’s most famous cultural attractions, including the Prado Museum and Retiro Park.



BY MIKO KOH

22nd May, 2015, Mandarin Oriental International Limited announced that it is to acquire the Hotel Ritz, Madrid for US$148 million in a joint venture with The Olayan Group, a Saudi Arabian multinational group.

The Hotel will undergo a comprehensive renovation in 2017, encompassing all rooms and public areas, with the Hotel also benefiting from the addition of a spa and a variety of new restaurants and bars, all designed to enhance the property’s position.currently estimated to cost some US$103 million. Mandarin Oriental’s total investment for its share in the project, including the acquisition, renovation and transaction expenses, is estimated at US$126 million, with the Group’s share of the purchase price to be paid from cash reserves, and the renovation to be funded through an appropriate mixture of equity and debt. Mandarin Oriental will manage the Hotel under a long-term management agreement.