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Mandarin Oriental to acquire Boston hotel and property for US$140m
MANDARIN Oriental International, a subsidiary of mainboard-listed Jardine Strategic Holdings, is acquiring a Boston hotel it manages and the freehold land it is located on for US$140 million.
Mandarin Oriental has managed the 148-room hotel on Boylston Street under a contract since the hotel opened in 2008. It also manages the 85-unit privately owned The Residences at Mandarin Oriental connected to the hotel.
The hotel had been offered for sale by auction, and a number of bids were received. Mandarin Oriental's management contract provides it the right to acquire the property for a sum equivalent to the highest bid.
The acquisition will be funded through a mix of existing cash reserves and debt, and is expected to have a positive impact on the group's earnings, Mandarin Oriental said. The deal is expected to be completed by the first quarter of 2016.