Mandarin Oriental divests Washington DC hotel for US$139m in gross proceeds
MANDARIN Oriental International is selling its Washington DC hotel to London-headquartered private equity real estate manager Henderson Park, announced the hotelier on Tuesday (Jul 19).
Following the sale completion scheduled for Sep 8, Mandarin Oriental, Washington DC will cease to be operated by the group.
The transaction is expected to reap gross proceeds of about US$139 million and a post-tax, non-trading gain of US$45 million, which will be recognised this calendar year.
In a press statement, group chief executive James Riley noted strong interest from investors in the Washington DC property while also highlighting the US as a key market for the group.
In his view, “the time was right” to initiate a sales process of the asset as the group’s portfolio has developed significantly over the last 18 years “with many new, unique properties across the world that are more in line with (the group’s) long-term vision for the brand than this asset”.
“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,” said Riley.
Shares of Mandarin Oriental ended Tuesday flat at US$1.86 on the Singapore Exchange.
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