a Dubai-based investment house, 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.
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.”
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.
Since it was launched in April 2006, Istithmar Hotels, under the leadership of Joe Sita, has developed a portfolio with a total investment value of
approximately US$ 3 billion. This includes a significant investment in Kerzner Group, the developer and operator of Atlantis Resorts and of One
and Only, the luxury resort brand; the master franchise for easyHotels in the Middle East, the Levant, North Africa, India and Pakistan; and
ownership of the Knickerbocker Hotel on Times Square, the W Hotel Union Square in New York and the Hotel Washington in Washington DC. It
recently announced the purchase of a 24.99% shareholding in leading Thai real estate developer, Raimon Land Public Company Limited, as well
as a significant strategic investment in International Hotel Investments plc of Malta.
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