NEW YORK— Asia’s Mandarin Oriental International wants to boost its presence in North America, with an eye to adding hotels in Boston, Los Angeles, Chicago, Toronto, Houston and Mexico City. The company also noted an interest in adding resort locations, which one executive told HOTEL BUSINESS®, may occur in the very near term. Wolfgang Hultner, CEO/The Americas for the Mandarin Oriental Hotel Group, said that the company is talking to a number of people about potential deals for new hotels and resort locations. “We are definitely considering expansion in key gateway cities, not just in the U.S., but in North America, with a keen interest in strategic expansion in resort areas,” Hultner said. He noted America, Puerto Rico and Mexico are particular areas of interest when it comes to adding new Mandarin Oriental resorts. Making a play for a presence in major cities may be slightly more difficult in today’s climate, but Hultner said that the company is open to putting in equity to secure new hotel developments in major North American markets. While the Mandarin executive said he could not talk of deals currently in the works, he noted that he may have an announcement or two within the next three months. Hultner was recently found touting one of Mandarin’s newest projects which is currently under construction— a 250-room hotel in the massive $1.7 billion AOL Time Warner Center at Columbus Circle in New York City. The company invested some $125 million for a 50% stake in the New York project, which will also be home to the corporate offices of AOL Time Warner, as well as The Related Companies, which is another firm involved in the building’s development. The mixed-use project will feature one million square feet of office space, as well as stores, restaurants, and concert venue and luxury condominiums. It is expected to open in 2003. In addition to the NYC hotel, the company recently announced it will build a new, 400-room hotel in Washington, DC, overlooking the Potomac Bay. “We are certainly lucky in that we have a warchest [of capital]that is quite sizable and can be used for expansion opportunities,” Hultner said. To that end, the executive hinted it may even been possible that Mandarin will purchase a smaller hotel company with existing properties that would fit in its portfolio. “It is always a possibility,” he said. Meanwhile, the company has a bit of equity going into its Washington and Tokyo properties. Mandarin Oriental will hold an 85% equity stake in the $148 million property in Washington. The hotel will be built in a V-shape, and will abide by local zoning laws that do not allow buildings to rise higher than 12 stories high. It is expected to open in 2004, said Hultner. The company is also investing a significant amount of money in its Tokyo property. Hultner is optimistic news of new Mandarin developments will surface soon. “Since 9/11, people are willing to sell because many are having cash flow problems,” he noted regarding the dealmaking climate.
Soon-to-open Mandarin Oriental New York City