Saudi Arabian private equity firm and hotel owner The Olayan Group has bought the 120-room Mandarin Oriental, Barcelona, from Andorra-based family office Reig Capital Group, according to a news release from JLL.
No price tag was disclosed in the July 3 deal, but the guide price is reportedly €240 million ($261 million), according to Spanish newspaper El Pais. The price represents a healthy €2 million per key, which the newspaper said is a record in Spain.
Reig’s debt partner is Farallon Capital Europe, which, according to Brainsre.com bought Reig’s debt with Spanish bank Caixa and put the asset on the market in October 2020 for €200 million.
Mandarin Oriental is expected to continue operating the hotel, which is located on Barcelona’s famed street Passeig de Gràcia. The nine-floor hotel opened in November 2019, according to CoStar, Hotel News Now’s parent company.
Olayan already has a partnership with Mandarin Oriental in the 50-50 ownership of the 153-room Mandarin Oriental Ritz, Madrid hotel, which was jointly acquired in 2015 for approximately €130 million.
Business advisory JLL, which advised Reig on the deal, did not comment to HNN as to the actual sale price.