The sum will be recognised in the group’s results for the FY2022.
Mandarin Oriental International, which is a part of the Jardine Matherson group, has entered into an agreement to sell Mandarin Oriental, Washington DC to Henderson Park, a London-headquartered private equity real estate manager.
Following the sale, the group will receive proceeds of US$139 million ($194.2 million) with a post-tax, non-trading gain of approximately US$45 million. The sum will be recognised in the group’s results for the FY2022.
“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,” says James Riley, group chief executive.
“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,” he continues.
In the same statement, Riley adds that the US is a “key market” for Mandarin Oriental.
In addition, 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.
“Further exciting developments are expected in the coming months,” he adds.
The sale of Mandarin Oriental, Washington DC is scheduled to occur on Sept 8. The property will cease to be operated by the group after then.
Shares in Mandarin Oriental closed 4 US cents lower or 2.11% down at US$1.86 on July 18.