Mandarin Oriental Columbus Circle NYC Owners Selling 248 Key Hotel
Location: Columbus Circle, New York, NY, USA
Name: Mandarin Oriental, New York
Guide Price: Anyone’s guess! The property was valued at US$340 in 2007….Could be as low as $200m+ in this market
No. of Keys: 248 rooms and suites
The Opportunity:
The Mandarin Oriental Hotel at Columbus Circle, one of the city’s premier luxury lodging establishments, is quietly up for sale, according to the New York Post.
The offering for the 248-rooms-and-suites hotel towering over Central Park comes as the state of the city’s hotel industry has been likened to a “depression” by the American Hotel and Lodging Association.
Although the Mandarin Oriental reopened on April 1, it’s been staggered like other leading hotels by the lack of high-spending visitors and business travellers from abroad.
The property is owned by an entity known as IW Columbus Center LLP, of which an Investment Corporation of Dubai subsidiary is the majority partner. Mandarin Oriental Hotel Group (MOHG), which owns some but not all of the hotels bearing the Mandarin Oriental flag, has a 25 percent interest and manages the Manhattan property under a long-term contract.
The hush-hush offering is being handled by JLL. A hotel rep confirmed its ownership structure but didn’t comment on the sale offering.
The MOHG also provides hotel services to 65 condo apartments in the north tower of Deutsche Bank Center, which was previously known as Time Warner Center. The hotel itself is a separately owned condo unit within the mixed-use, twin-towered skyscraper that was developed by Related Companies.
An investment-sale source who is not involved at the Mandarin Oriental speculated that in today’s distressed market, a sale could fetch as little as $100 million (THPT….unlikely!). The glamorous property was valued at $340 million in 2007.
The hotel occupies floors 35-54 and is known for its much-in-demand ballroom, five-star spa and eating and drinking venues including MO Lounge. Liam Neeson and Lucy Liu are among regular guests.
Hotel Association of New York president Vijay Dandapani, noting that “foreign owners have their own issues” beyond the situation in New York, wouldn’t speculate on a possible price. But he cast the Mandarin Oriental offering in the context of the overall hotel situation, which he described as “bleak.”
“Every single hotel went from a cash-flow crisis to a liquidity crisis to a solvency crisis,” he said.The better news, Dandapani said, was that whoever a new owner might be, “The Mandarin Oriental is not going anywhere. It will remain the Mandarin Oriental” thanks to the long-term contract — and because the company needs to be in Manhattan.
Flag & Management: We know Mandarin will remain in place as management and brand
Tenure: Freehold
Agent: JLL
Guide Price: As above, who knows
Date Posted: September 2021
THPT Comment: The sale has NOT been substantiated, but reports are in the press….we suspect that it will still fetch a good price based on the quality of the hotel, it’s location and stunning public areas, roof-top bar etc
First Seen: New York Post
Hotel & Serviced Apartment owners can be naturally reticent in publicising their property is for sale…for confidentiality reasons, for staff and current client reasons, so the properties featured in this section will either be “generic” or “name specific”
Each week we mail the opportunities posted in that period, but check-out the tab “Hotels Available” and call us for details of “Under the Table” – deals not posted on the site at all.
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