Mandarin Oriental to acquire Boston property
Mandarin Oriental International has revealed it is to acquire the freehold in a property that houses Mandarin Oriental, Boston together with its hotel business for $140 million.
Mandarin Oriental has managed the 148-room hotel under a management contract since it opened in 2008.
The group also manages 85 privately owned Residences at Mandarin Oriental connected to the hotel.
Mandarin Oriental has exercised its right under a long-term management contract to acquire the property from CWB Hotel Partnership.
The hotel had been offered for sale by auction, and a number of bids had been received.
Under Mandarin Oriental's management contract, it has the right to acquire the property for a sum equivalent to the highest bid.
Completion of the sale and purchase of the hotel, subject to final court approval of the terms agreed at auction, is expected to take place in the first quarter of the year.
Group chief executive, Edouard Ettedgui, said: "We are delighted to acquire the property that houses our luxury hotel in the heart of Boston.
“This acquisition ensures the continuity of our position in Boston, and we look forward to maintaining our award-winning service in this key gateway city."
The hotel generated earnings before interest, taxes, depreciation and amortization (EBITDA) of $5 mill