JLL advises on the sale of Mandarin Oriental, Paris

Mandarin Oriental International Limited, the publicly listed parent company of Mandarin Oriental Hotel Group, announced that it has entered exclusive negotiations with SLH Hotels Srl (Statuto Group) for the sale of its interests in Mandarin Oriental, Paris for €205 million. The proceeds would be applied towards the Group’s general development strategy.

Mandarin Oriental would retain a 50-year term management agreement to manage and brand the Hotel. As part of the transaction, there are plans for a prospective renovation of €50 million to further elevate the property's appeal.

The Group’s acceptance of the Statuto Group’s offer for its interests in the hotel is subject to completion of a consultation process with the relevant Works Council, which will begin shortly. Subject to that process and to the statutory right of pre-emption by the City of Paris, among other conditions, it is anticipated that final documentation will be signed and completion of the sale of the Hotel will take place by 31st March 2024. 

The 135-room Hotel, located on Rue Saint-Honoré, is renowned as one of the key luxury palace hotels in Paris, one of the world's most coveted locations.

“Since opening in 2011, Mandarin Oriental, Paris has been one of the leading luxury hotels in the city and is a designated Palace hotel. We look forward to working with the Statuto Group, which is also the owner of Mandarin Oriental, Milan, in continuing to deliver the award-winning service and luxury experiences for which Mandarin Oriental is renowned,” said Laurent Kleitman, Group Chief Executive of Mandarin Oriental Hotel Group. 

JLL, a leading global real estate advisory firm, provided guidance and advisory support for this notable deal ensuring a smooth transaction process for the seller.

Patrick Saade, Head of the Global Hotels Desk at JLL comments, “Mandarin Oriental, Paris is part of an outstanding brand, enjoys an exclusive location on Saint Honoré and benefitted from high investor demand. As the hospitality industry continues to gain prominence and consumer preferences evolve, hotels present themselves as a focal point for investors looking to invest their capital in the increasingly dynamic real estate market.”

Laura Ben-Ibgui, Head of the France Hotels at JLL comments, “The acquisition of Mandarin Oriental, Paris and its future renovation is a testament to investor confidence in the robust investment fundamentals of the Paris luxury hotel market. The city's position as a highly sought-after global destination, coupled with strong hotel performance, has solidified its appeal for international investment in the hospitality sector.”