Istithmar Hotels completes Mandarin Oriental purchase

Istithmar Hotels has purchased 73 per cent of the property, buying 25 per cent from Mandarin Oriental Hotel Group and 48 per cent from a joint venture between Apollo Real Estate and Related. Related was also the developer of the hotel. The sale was announced on 21 December 2006 and the transaction has now completed. The total value of the hotel for the purposes of this transaction is US$ 340 million.

Istithmar Hotels FZE purchased the stake through its wholly-owned subsidiary, Istithmar Columbus Centre Holding Company LLC. Istithmar Hotels FZE is part of Istithmar PJSC which is 100 percent owned by Dubai World, which is in turn is wholly owned by the Government of Dubai.

Joe Sita, chief executive of Istithmar Hotels FZE, said:

"The acquisition of a majority stake in the Mandarin Oriental hotel marks another important step forward for Istithmar Hotels in developing our portfolio of hotels.

"A major element of our strategy is to build a portfolio of luxury hotels in major global centres. Mandarin Oriental, New York is not just one of the finest hotels in New York City; it is one of the finest hotels in the world."

Mandarin Oriental, New York provides a stunning blend of modern design and oriental flair in the heart of Manhattan. Its 248 guest rooms and suites offer breathtaking views over Central Park and the City skyline, while the hotel's service and amenities provide an unparalleled New York guest experience. The hotel, recipient of the prestigious Mobil Five-Star award for 2007, is located at Columbus Circle, ideally located near some of the city's best shops, restaurants, performance centre and Central Park. Mandarin Oriental Hotel Group retains 25% equity in the hotel and has a long term management contract to continue operating the property as part of the brand's portfolio.

Since it was launched in April 2006, Istithmar Hotels, under the leadership of Joe Sita, has developed a portfolio with a total investment value of approximately US$ 3 billion. This includes a significant investment in Kerzner Group, the developer and operator of Atlantis Resorts and of One and Only, the luxury resort brand; the master franchise for easyHotels in the Middle East, the Levant, North Africa, India and Pakistan; and ownership of the Knickerbocker Hotel on Times Square, the W Hotel Union Square in New York and the Hotel Washington in Washington DC. It recently announced the purchase of a 24.99% shareholding in leading Thai real estate developer, Raimon Land Public Company Limited, as well as a significant strategic investment in International Hotel Investments ("IHI") plc of Malta.

Joe Sita added:

"We're building a portfolio of both luxury and budget hotels in key target markets around the world. In the last few months especially, we have been able to complete acquisitions and strategic investments which I am confident are going to deliver strong returns for the group."