Mandarin Oriental Las Vegas to Become a Waldorf Astoria

Date: May 2018

Location: Las Vegas, Nevada, USA

Name: Was Mandarin Oriental Las Vegas; Will be Waldorf Astoria Las Vegas

No. of Keys: 392 rooms plus 225 condominium residences – but no casino.

Seller: CityCenter Holdings – a JV between MGM Resorts and Infinity World Development Corporation, a wholly owned subsidiary of Dubai World. The JV also owns the Aria Resort & Casino (4004 keys), Vdara Hotel & Spa (1495 hotel room-condominiums) and the Veer Towers (669 condominium residences).

in April 2017, The JV announced that it had completed its refinancing transactions consisting of a new seven-year $1.6 billion term loan and a new five-year $125 million revolving credit facility.

In connection with the refinancing transactions, the term loan B was issued at 99.5% of par and will bear interest at LIBOR plus 2.50%, representing a 25 basis point decrease from the prior facility, with a LIBOR floor of 0.75%.

The revolving facility will bear interest at LIBOR plus 2.00%, unchanged from the prior facility.

The revolving facility will mature in 2022 and the term loan B facility will mature in 2024.

CityCenter used the net proceeds from the term loan to (i) refinance the outstanding amount under its existing term loan, (ii) pay a $350 million dividend to its members and (iii) pay related fees and expenses.

CityCenter also paid its previously announced $250 million dividend from cash on hand, resulting in an aggregate dividend of $600 million to its members.

Buyer: Undisclosed. Mandarin were served notice on their management agreement for later 2018. Hilton confirmed that Waldorf Astoria will assume full operation of the property, with plans to “re-imagine and renovate the hotel with brand touches and improvements.”

When the property opens as the Waldorf Astoria Las Vegas it will be the brand’s first property in the market.

“We are thrilled to announce the addition of a Waldorf Astoria in the western part of the U.S., and in the heart of such a dynamic, internationally beloved city like Las Vegas,” Martin Rinck, global head, Luxury & Lifestyle Group, Hilton, said in a statement.

“Paired with the recently opened Waldorf Astoria Beverly Hills and the brand’s recently announced properties in San Francisco and Antigua, the signing of Waldorf Astoria Las Vegas builds on the brand’s exciting trajectory and impressive growth story.”

Following the “tremendous success” of the Waldorf Astoria Beverly Hills, Rinck continued, the company was seeking another property in the western U.S.

While there has been no official announcement of a buyer for the Mandarin Oriental, the Vital Vegas blog has suggested that it could be the owner of Hilton Lake Las Vegas, real estate investor “Ronnie” Lam and his Kam Sang Co.

Employees attending the Aria ballroom event were reportedly informed that the buyer is an “Asian investor.” A $50-million renovation will accompany the change in ownership.

Price: US$214m

Price per Key: US$346,839 (rooms and condos)

THPT Comment: Maybe Hilton’s first Waldorf Astoria, but they do have five other Hiltons in town. We always wondered how successful this hotel would be when it opened as a non-casino hotel in Las Vegas…

First Seen: Hotel Management