JLL announces sale of 75% stake in Mandarin Oriental New York (2024)

JLL Hotels & Hospitality has sold a 75% interest in the Mandarin Oriental New York to affiliates of the Indian conglomerate Reliance Industries Ltd., the company announced last week.

The 244-room hotel opened 20 years ago and occupies floors 35 through 54 of the Deutsche Bank Center in Manhattan’s Columbus Circle. The property features the American contemporary dining restaurant MO Lounge, 9,000-plus square feet of meeting space and a fitness center with 75-foot lap pool. It’s also home to one of three five-star spas in Manhattan, according to Forbes Travel Guide.

Mumbai-based Reliance Industries, led by billionaire Mukesh Ambani, previously noted its intentions to purchase the luxury hotel in a stock exchange filing in January.

“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 JLL Hotels & Hospitality Global CEO Gilda Perez-Alvarado in the release. “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.”

Added Senior Managing Director and Head of U.S. Investment Sales Jeffrey Davis: “New York led all urban markets in Q1 2023 luxury transaction volume underpinned by strong fundamental performance. New York luxury RevPAR reached its highest Q1 level in the market’s history as the market continues to exceed prior ADR thresholds.”

Perez-Alvarado, Davis and Executive Vice President Stephany Chen led the sale.