21st Dec 2006 09:28
Mandarin Oriental International Ld21 December 2006 To: Business Editor For immediate release MANDARIN ORIENTAL TO SELL HALF OF ITS EQUITY INVESTMENT IN ITS NEW YORK HOTEL 21st December 2006 - Mandarin Oriental International Limited announced todaythat its wholly owned entity, Mandarin Oriental New York Inc., has entered intoan agreement to sell half of its investment in Mandarin Oriental, New Yorkreducing the Group's interest in the hotel from 50% to 25%. The Group willcontinue to manage the hotel under a long-term contract. At the same time, theGroup's 50% partner in the hotel, Apollo Real Estate and Related Companies, willsell the majority of its equity to the same buyer. Completion is expected inFebruary 2007. The buyer of the 73% interest in the hotel is Istithmar Columbus Centre HoldingCompany LLC, which is owned by Istithmar Hotels, a wholly owned subsidiary ofIstithmar PJSC, which is 100% owned by Dubai World which in turn is wholly ownedby the Government of Dubai. The 248-room Mandarin Oriental, New York is valuedat US$340 million for the purposes of the transaction. The carrying value ofhalf of the Group's 50% investment in the hotel as at 30th June 2006 was US$14.5million. On disposal of its 25% interest, the Group will receive after tax proceeds ofUS$29 million with a post tax gain of approximately US$16 million, which will berecognized in 2007. As part of the transaction, the Group will also receiverepayment of its outstanding mezzanine loan to the hotel of US$40 million. Thetotal proceeds of US$69 million will be applied towards the Group's generalcorporate purposes, including pursuing its development strategy. As part of the overall transaction, the terms of the Group's management contractwill be enhanced and the long-term tenure of the Group's management will besignificantly increased. Mandarin Oriental, New York, which opened at the end of 2003, has achievedsignificant recognition and awards for its outstanding service and facilities,including the Mobil 5 Star which was awarded earlier this year. "MandarinOriental Hotel Group is delighted by the performance of the hotel so far and weare looking forward to working closely with our new partner on the futuresuccess of the property," said Edouard Ettedgui, Chief Executive of MandarinOriental Hotel Group. Mandarin Oriental Hotel Group is the award-winning owner and operator of some ofthe world's most prestigious hotels and resorts, currently operating 21 luxuryhotels with a further 11 under development in Riviera Maya-Mexico and HainanIsland-China (2007), Barcelona, Boston and Grand Cayman (2008), Dallas, Chicago,Las Vegas, Macau, Marrakech and Turks and Caicos (2009). In total, MandarinOriental now operates, or has under development, almost 9,000 rooms in 18countries with 13 hotels in Asia, 13 in the Americas and six in Europe and NorthAfrica. Mandarin Oriental International Limited is a public listed company anda member of the Jardine Matheson Group. - end - For further information, please contact: Mandarin Oriental Hotel Group International Limited Stuart Dickie (852) 2895 9177Group Finance e-mail: [email protected] Jill Kluge 44 (20) 7766 3671Group Communications - Global e-mail: [email protected] Catherine Martel 44 (20) 7766 3677Group Communications - Europe e-mail: [email protected] Sally de Souza (852) 2895 9160Group Communications - Asia e-mail: [email protected] Danielle DeVoe 1 (212) 399 3938 Group Communications - United States e-mail: [email protected] GolinHarrisKennes Young (852) 2501 7987 Photography of Mandarin Oriental is available to download, in high and lowresolution, in the Photo Library of our Media section, atwww.mandarinoriental.com. This and other Group announcements can be accessed through the Internet at 'www.mandarinoriental.com'. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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