Mandarin Oriental Sold and We Might Know the Buyer

MGM Resorts International recently announced it would sell the Mandarin Oriental in Las Vegas for $214 million.

It’s anticipated the deal will close this summer, but so far, the buyer of the non-gaming Mandarin Oriental hotel hasn’t been announced.

We love a good mystery!

Mandarin Oriental Las Vegas

You can grab a condo in Mandarin Oriental for about $2 million. The average cost of a wedding at Mandarin Oriental is between $23,000 and $33,000.

For some time, insiders believed Mandarin Oriental could become a Ritz-Carlton, then employees learned the buyer is a “private investor.”

The latest rumblings are the buyer of Mandarin Oriental could be Kam Sang Co., the owner of Hilton Lake Las Vegas.

Hilton Lake Las Vegas originally opened as a Ritz-Carlton, but closed in 2010. It later opened as Ravella, then became a Hilton in 2013.

The California-based Kam Sang Co. is controlled by real estate investor Man Ho Lam, better known by his nickname, “Ronnie” Lam.

If this rumor pans out, it’s probably for the best Mandarin Oriental is a non-gambling hotel. Man Ho Lam was previously denied a gaming license when the Nevada Gaming Control Board found he “failed to satisfy their burden of proving their qualification to be licensed.”

Kam Sang Co. also owns several hotels in California, including Courtyard Los Angeles Baldwin Park, Sheraton Garden Grove, Embassy Suites Los Angeles and Residence Inn La Mirada Buena Park.

Again, this is just a rumor, until it’s not. If it’s in a news release, it’s too late. Our inquiry to the company received no response.

It’s unclear what the sale of Mandarin Oriental means for the five-star hotel, and it remains to be seen whether it will be rebranded once the deal is consummated.

Update (5/7/18): We’ve now heard employees believe Mandarin Oriental could become part of the Curio Hotel by Hilton family.

Update (5/15/18): Latest word from two sources is employees (at an event inside Aria resort) have been informed Mandarin Oriental will become Waldorf Astoria, a Hilton Worldwide brand.

Waldorf Astoria Las Vegas

Let’s hope the Waldorf Astoria Las Vegas is as fancy as it sounds.

As further confirmation, the domain WaldorfAstoriaLasVegas.com now redirects to the main Waldorf Astoria Web site. Word is $50 million will be invested in renovations as the hotel is rebranded.

We hear August 30, 2018 is the last day for Mandarin Oriental Las Vegas.

Update (5/16/18): It’s been confirmed Mandarin Oriental will be a Waldorf Astoria.

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7 thoughts on “Mandarin Oriental Sold and We Might Know the Buyer

  1. Steven

    I don’t get the low price it sold for though. It has to be worth more then that right? I still think there’s more to this mystery.

    Reply
    1. James

      Keep in mind half the building, the condo floors, would not be included in this deal. When I worked at this hotel I know for years they did not make any money. It’s hard to offer the Mandarin Oriental services/expectations with the lower prices you have to charge to compete with the strip.

      Reply
    2. alex

      I don’t believe the condos are part of this sale. So, it’s the 392 hotel rooms/suites, the restaurants, the spa, and the couple of meeting rooms/ballroom. Sometimes, hotels will contract out some of their facilities like restaurants or spas. If that’s the case here, those spaces probably wouldn’t be huge sources of revenue for the new owner.

      At $214 million, that’s about $546k per room. According to this 2015 source, the average cost of a newly built luxury property was $705k per room. Unfortunately, I couldn’t find figures on resales of luxury hotels.

      Without knowing the details, it’s hard to know if this sale was a bargain. It’s possible that the hotel is in need of renovation. It opened in November 2009. Additionally, we don’t even know if the hotel is profitable. To say it has stiff competition would be an understatement. I wouldn’t be shocked to find out that the Mandarin Oriental is losing money. If it is, that might explain for the purchase price.

      Source: http://www.boutique-hospitality.com/how-much-does-it-costs-to-build-a-hotel-2015/

      Reply

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