Mandarin Oriental International Limited, the listed parent company of Mandarin Oriental Hotel Group ("MOHG"), announced that it has entered into an agreement with Eagle Hills, a private real estate investment and development company based in Abu Dhabi, to sell its shares in Mandarin Oriental in Munich.
A subsidiary of MOHG has retained a long-term management contract to operate the hotel under the Mandarin Oriental brand. The sale of the hotel was completed in July.
The sale of the leading luxury hotel in Germany represents a groundbreaking transaction and demonstrates the strength of the European luxury hotel market.
The global real estate services provider CBRE advised the seller on the transaction. Kenneth Hatton, Head of Hotels, Europe at CBRE, says: "The Mandarin Oriental brand is special – it is rich in tradition and at the same time shows dynamic growth – and investors are aware of this. In recent years, luxury hotels have proven their remarkable resilience. The high level of competition in this sales process has also proven that a combination of a unique property and world-class management is a compelling investment proposition for long-term global capital."
The 5-star hotel with 73 rooms is located in the heart of the historic center of the Bavarian capital and is considered Germany's leading luxury hotel with the highest average daily rate and the highest RevPAR in the last 25 years.
Helena Rickmers, Head of Hotel Investments, Germany at CBRE, adds: "Munich continues to develop into an important European destination for leisure and business travellers. With 25 years of market dominance and its unique and discreet location in the heart of the Old Town, it was no surprise that the Mandarin Oriental in Munich is seen by global investors as a flagship asset for an increasingly relevant asset class in the city."
