Mandarin Oriental International has agreed to sell its Washington D.C. hotel to Henderson Park, a private equity real estate manager headquartered in London.
On completion of the sale, which is scheduled to occur on 8th September 2022, the property will cease to be operated by Mandarin Oriental.
”Following the sale, the group will receive gross proceeds of approximately US$139 million with a post-tax, non-trading gain of approximately US$45 million, which will be recognised in 2022,” said Mandarin Oriental in a press release.
“Over the last 18 years Mandarin Oriental has positioned this hotel as a market leader in the city. During this period however, the Group’s portfolio has developed significantly with many new, unique properties across the world that are more in line with our long-term vision for the brand than this asset. Today, with our track record in creating market-leading hotels, the Group’s strategy for expansion is focused on growing the management business with brand-defining properties. With strong interest from investors in this property, the time was right to initiate a sales process which has now been successfully concluded,” said James Riley, Group Chief Executive.
“The United States is a key market for Mandarin Oriental. 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,” Riley added.