JLL Hotels & Hospitality completes partial interest sale of Mandarin Oriental, New York

Manhattan, NY JLL Hotels & Hospitality brokered the sale of a 75% interest in the Mandarin Oriental, New York, to affiliates of Reliance Industries Ltd. which has been completed. JLL represented the sellers in the sale of their ownership stake.

The 244-room Mandarin Oriental, New York, opened in 2003, and is positioned as one of the most iconic, luxury hotels in New York City. The property occupies floors 35 through 54 of the Deutsche Bank Center at Columbus Circle, and features the MO Lounge, over 9,000 s/f of meeting space, one of 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 and head of U.S. investment sales, and Stephany Chen, executive vice president.

“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 US,” 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.”

“New York led all urban markets in Q1 2023 luxury transaction volume underpinned by strong fundamental performance,” said Davis. “Additionally, New York luxury RevPAR reached its highest Q1 level in the market’s history as the market continues to exceed prior ADR thresholds.”