Mandarin checks out of NY hotel for US$150m
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.
The disposal is Mandarin's second divestment this year.
The company made an after-tax profit of US$36 million from the sale of its 40 per cent stake in the Kahala Mandarin Hotel in Honolulu, Hawaii, in June.
Mandarin has hotels under construction in Chicago, Las Vegas, Boston, Mexico, Grand Cayman, and Macau.
The Mandarin Oriental Tokyo opened earlier this month. The company is also pursuing hotel projects in Beijing and Shanghai.
The company also stressed that it would maintain its presence in New York with the Mandarin Oriental, which is located in Central Park.
Mandarin Oriental shares gained 3.1 per cent on the Singapore stock exchange yesterday to close at 84 US cents. The shares have rebounded in the past three months from a six-month low of 77.5 US cents in the last week of October.
