The EUR130 million (US$148m) deal will see Mandarin Oriental and the Olayan Group each hold a 50% stake in the property, following the purchase of 100% of the shares in Hotel Ritz Madrid SA from its existing shareholders, Belmond Spanish Holdings and Landis Inversiones.
Following the acquisition, the 105 year-old hotel will undergo a major renovation which is due to commence in 2017. The work is estimated to cost some EUR90m and will include the revamp of all 167 rooms and suites, plus the addition of a new spa, restaurants and bars.
“We are pleased to join with Olayan for this project, which presents an exciting opportunity to extend our portfolio to another key European capital city,” said Edouard Ettedgui, Mandarin Oriental’s group chief executive. “This beautiful hotel will complement our… property in Barcelona and both should benefit from the overall economic recovery in the country.”
Located within an upscale residential area in central Madrid, the Hotel Ritz is currently operating as a Belmond hotel.