JLL Hotels & Hospitality has revealed that the sale of a 75% interest in the Mandarin Oriental, New York, to affiliates of Reliance Industries Ltd. has been completed. JLL represented the sellers in the sale of their ownership stake.
The 244-room Mandarin Oriental, New York, opened in 2003, occupies floors 35 through 54 of the Deutsche Bank Center at Columbus Circle, and features the MO Lounge; more than 9,000 sq. ft. of meeting space; one of the three Forbes Five-Star spas in Manhattan; and a fitness center with an indoor 75-foot lap pool.
The JLL Hotels & Hospitality team representing the sellers was led by Gilda Perez-Alvarado, global CEO; Jeffrey Davis, senior managing director/head of U.S. investment sales; and Stephany Chen, EVP.
“We are seeing a rise in luxury hotel transaction volume as investors gravitate towards must-have, irreplaceable trophy assets, with New York leading the way in terms of cross-border investments into the U.S.,” said Perez-Alvarado. “Globally, luxury hotel transaction volume surpassed $10 billion in both 2021 and 2022 for the first time since 2015, underpinned by record-high pricing and attractive yields.”
Davis added, “New York led all urban markets in Q1 2023 luxury transaction volume underpinned by strong fundamental performance. Additionally, New York luxury RevPAR reached its highest Q1 level in the market’s history as the market continues to exceed prior ADR thresholds.”