Mandarin Oriental to splurge US$170m on Munich hotel makeover

New look to be unveiled in 2021.

In a release, Mandarin Oriental International Limited announced that it is to expand and enhance its wholly-owned hotel in Munich through the construction of a mixed use complex on an adjacent site.

The Group has entered into an agreement with the project developer Wöhr + Bauer Projekt HTW GmbH & Co. KG and its parent entity Wöhr + Bauer GmbH (together ‘W+B’) to construct new hotel rooms and facilities as part of the mixed use complex estimated to open in 2021.

The Group’s total investment in the project, which will also include a refurbishment of the existing hotel’s 73 rooms, is estimated at €124 million (US$170 million), in today’s terms.

The site will be developed into a mixed use complex of some 23,000 sq. m. comprising two buildings that will jointly house new hotel rooms and facilities, 19 luxury branded Residences at Mandarin Oriental, retail units, commercial offices and underground car parking.

One of the new buildings, housing the hotel rooms and facilities as well as six of the 19 Residences at Mandarin Oriental and approximately 800 sq. m. of retail, will be connected to the existing hotel via an underground tunnel.

Mandarin Oriental will own 100% of the freehold interest in the land and buildings of the new hotel annex, comprising 51 additional guestrooms (increasing the total number of guestrooms of the expanded hotel to 124), a restaurant and bar, a spa, fitness centre and swimming pool, hotel back of house facilities and ten underground car parking spaces.

Mandarin Oriental will manage the expanded hotel, as well as brand and manage the residences. W+B will retain and manage 100% of the freehold interest in the remaining land and buildings, comprising 19 Residences at Mandarin Oriental (until sold), a third party operated restaurant, commercial offices, retail outlets and underground car parking.

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