Mandarin Oriental International says it will sell one of its two hotels in New York - the Mark - for US$150 million.
The announcement came a day after the group's flagship hotel in Central closed for a US$140 million facelift.
The luxury hotel arm of Jardine Matheson Holdings will make US$35 million after tax from the sale of its 100 per cent leasehold stake in the Mark, which the company acquired in 2000 as part of the US$142.5 million acquisition of the Rafael Group.
A company spokeswoman said proceeds from the sale will be used for general corporate purposes including the group's development strategy.
'The market conditions surrounding the sale of this property are extremely positive,' she said. 'Opening the Mandarin Oriental in New York in 2003 greatly increased the company's image there, so this offer came at a good time to generate capital for our other developments.'
The spokeswoman also said the company expects to continue managing the Mark after the deal goes through next month, although final terms have yet to be confirmed.