Hong Kong-based Mandarin Oriental International announced on Wednesday, Jan. 6, that the company is buying the Mandarin Oriental, Boston through an acquisition worth a record-breaking $140 million deal.
The 148-room hotel has been under Mandarin Oriental operations since 2008, however, CWB Hotel Limited Partnership owned the Boylston Street property. Mandarin Oriental was able to purchase the property through the contract with CWB. The Boston Herald reports:
"The company said it purchased the hotel from CWB Hotel Limited Partnership, an affiliate of Anglo Irish Bank Corp., under a provision of its long-term management contract that allowed it to acquire it for a sum equal to the highest bid for the property."
Hilton Worldwide Inc. submitted a bid on December through "a U.S. bankruptcy court-supervised auction." Apparently, the Irish government has been working to liquidate the assets held by the subsided Anglo Irish Bank Corp. since August 2013.
According to Luxury Daily, the "freehold interest" acquisition on the property will allow Mandarin Oriental the ability to control the fate of the property, with preference over their own standards instead of having to involve a third party owner.
As it turns out, the price per room equates to $945,946, which marks the most expensive per-room price for a Boston hotel. The company also manages the "85 attached privately owned Residences at Mandarin Oriental."
However, the sale of Mandarin Oriental, Boston is still subject to court approval. But it seems as though the company is confident in attaining the grant within the first quarter.
"We are delighted to acquire the property that houses our luxury hotel in the heart of Boston," Mandarin Oriental Group CEO Edouard Ettedgui said in a statement. "This acquisition ensures the continuity of our position in Boston, and we look forward to maintaining our award-winning services in this key gateway city."
