Mandarin Oriental Hotel Group To Manage The Mansion

Mandarin Oriental Hotel Group To Manage The Mansion

March 2, 2012

An international luxury hotel chain that’s tried to come to Atlanta for five years has finally struck a deal in Buckhead.

Mandarin Oriental Hotel Group has signed a contract to manage The Mansion on Peachtree, according to a source familiar with the deal.

The Mansion — a 127-room, five-star hotel with 45 luxury condominiums – will be reflagged under the Mandarin brand.

The Hong Kong-based company replaces Texas-based Rosewood Hotels & Resorts LLC, which has managed The Mansion since it was completed in 2008. Rosewood was given 60 days notice on Friday. The brand shift will start at the end of April.

It’s the second big change in recent weeks at The Mansion, perhaps signaling a new day for the 42-story tower that’s struggled since its birth during the Great Recession. The Atlanta Business Chronicle first reported Feb. 24 that a new restaurant concept called Del Frisco’s Grille is close to a deal to open its first Atlanta location at The Mansion.

“I think sometimes change is good,” said Paul Breslin, the managing partner of Panther Hospitality LLC, a hotel consulting firm. He said the Mandarin brand has a “greater following and greater reach” than Rosewood.

“Mandarin is a brand that has instant recognition with luxury and five-star service, which is what The Mansion has been trying to establish,” Breslin said.

Mandarin operates, or has in development, more than 40 hotels in 26 countries, according to its website.

Mandarin first announced its plans to come to the Atlanta in March 2007. The company the same year moved its U.S. development offices to Midtown, opening an around 7,000-square-foot office on 10th Street.

Atlanta-based Tivoli Properties Inc. in late 2008 set out to develop a 53-story hotel and condo tower in Midtown under the Mandarin flag. The plan was to build on a one-acre parcel along Peachtree Street, near the intersection of 14th Street.

But the site slated for the $285 million project was foreclosed upon in February 2010.
That same month, The Mansion returned to its lender.

The Mansion — brainchild of Atlanta developer John Williams, founder of Post Properties Inc. (NYSE: PPI) — opened in May 2008 at the start of the Great Recession.

The Mansion couldn’t survive the brutal real estate downturn that hit soon after it opened. The property returned to its lender, iStar Financial (NYSE: SFI), in 2010 for $66 million, a quarter of its $250 million price tag.

Mandarin also was a brand consideration for the St. Regis Atlanta when Tavistock Group acquired the property in March 2011.

From Atlanta Business Journal


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