The hotel, to be named Mandarin Oriental, New York, will be developed as part of the Columbus Centre project, a premier mixed-use real estate development, located on the site of the New York Coliseum at Columbus Circle, in the heart of Manhattan at the southwest corner of Central Park. The overall development includes the new Time Warner World Headquarters, CNN live broadcast production studios, luxury retail, entertainment, restaurant, office and residential components as well as a new 135,000 sq. ft, world-class performance hall, for Jazz @ Lincoln Center. As a result, Columbus Centre will become one of New York's most prestigious destinations.
The US-based consortium comprises The Related Companies, LP, a fully integrated real estate firm with divisions specialising in development, financial services and property management, and Apollo Real Estate Advisors, LP, who target a broad range of direct equity and debt investments in real estate assets, joint ventures and operating companies.
Final development costs will be dependent on completion of the project design and the awarding of principle contracts in late 2000. Of the estimated total project costs of US$200 million, 60% is expected to be financed by external loans. An additional 10% will be extended by Mandarin Oriental as an interest-bearing mezzanine loan. The balance will be funded as equity, contributed equally by Mandarin Oriental and the consortium. Mandarin Oriental's contribution will be funded from existing cash resources and bank facilities. The first significant portion of the investment will be made in July 2000, on payment for the land purchase. Construction of the property is due for completion in late 2003.
The property is being designed as a unique and luxurious city centre hotel with approximately 250 spacious, elegant guestrooms and suites, all of which will feature breathtaking views of the city and Central Park. The first floor of the hotel's public areas will be located more than 250 ft above ground level, providing a stunning hotel arrival experience. A full service spa and health club will be a prominent feature of the hotel. Other facilities include a vibrant signature restaurant, lobby lounge and cocktail bar. Meetings and conferences will be well catered for, with specially designed rooms incorporating the latest technology, providing for up to 750 people, including a 5,500 sq. ft ballroom overlooking Central Park. In addition, Mandarin Oriental will provide services to the 225 luxury residential apartments that are an integral part of the Columbus Centre project.
"This is a significant step for Mandarin Oriental and is very much in keeping with our strategy to grow our brand in major business centres worldwide. We are delighted to be establishing our Group in New York, thereby strengthening our presence throughout the US," said Edouard Ettedgui, Managing Director of Mandarin Oriental Hotel Group. "Together with our partners, we look forward to building Manhattan's most luxurious hotel and it is our belief that with its spectacular location and design, combined with Mandarin Oriental's award-winning hospitality, the hotel is set to become a world leader," he added.
"We are delighted to have reached agreement with Mandarin Oriental, with whom we have been working since first submitting our development proposals for this superb site. We
believe Mandarin Oriental's reputation for excellence will ensure that this luxury hotel is a great addition to the overall project," said Stephen M Ross, Founder, Chairman and Chief Executive Officer of The Related Companies, LP.
"Apollo is proud to be an investor and co-developer in this prestigious project and looks forward to a close association with Mandarin Oriental's globally recognized brand of luxury," added William L Mack, Chairman of Apollo Real Estate Advisors, LP.
"As well as being one of the North America's major business and financial centres, New York is also an important feeder market for Mandarin Oriental Hotel Group's properties," added Edouard Ettedgui. "Manhattan is achieving exceptionally high occupancies and rates within the luxury hotel sector, with limited additional room supply anticipated in the near future."
Mandarin Oriental Hotel Group operates hotels in San Francisco, Hawaii, London, Bangkok, Hong Kong, Jakarta, Macau, Manila, Singapore and Surabaya, Indonesia. Under construction is a 329-room luxury hotel in Miami, Florida, due for completion in October 2000.
For further information, please contact:
Mandarin Oriental Hotel Group International Limited
Edouard Ettedgui
Peter Cowern
Jill Kluge
(852) 2895 9288 (office)
(852) 2895 9266 (office)
(852) 2895 9264 (office)