Mandarin Oriental International (Mandarin Oriental) will undertake a new construction and refurbishment project for the expansion of its wholly-owned hotel in Munich, Germany.
As part of the plan, the company has signed an agreement with German project developer Wöhr + Bauer Projekt and its parent company Wöhr + Bauer (W+B) to build new hotel rooms and facilities as part of a new mixed use complex expected to be opened in 2021.
The project, which includes renovation of the existing hotel’s 73 rooms, is expected to cost €124m.
Mandarin Oriental group chief executive Edouard Ettedgui said, "This project creates a rare opportunity to expand one of Mandarin Oriental’s best performing assets, and further strengthen Mandarin Oriental, Munich’s market leading position in this strategically important German city."
The mixed use complex will include two buildings that will jointly feature new hotel rooms and facilities, 19 branded Residences at Mandarin Oriental, retail units, commercial offices and underground car parking.
The current hotel at the site will be connected to one of the new buildings, which will include hotel rooms and facilities as well as six of the 19 Residences along with 800m² of retail space, through an underground tunnel.
Mandarin Oriental will completely own the freehold interest in the land and buildings of the new hotel property, which will include 51 additional guestrooms, a restaurant and bar, a spa, a fitness centre and swimming pool and ten underground car parking spaces.
The company will manage the expanded hotel, which will have a total of 124 guestrooms, and also brand and manage the residences.
Following the construction, W+B will retain and manage the remaining land and buildings, including a third-party operated restaurant, commercial offices, retail outlets and underground car parking as well as the 19 Residences at Mandarin Oriental until they are sold.
The site of the planned complex is currently a multi-storey car park and, as W+B is required to develop and construct a replacement car park at another location in the city prior to starting the new hotel project, the building of the complex is expected to begin in 2018 and is likely be completed by late 2020.
The current multi-storey car park was acquired by W+B from the City of Munich in 2013.
Under the latest deal Mandarin Oriental will pay W+B a turnkey construction price for building the new hotel rooms and facilities, a portion of which will be subject to indexation.
W+B managing partner Wolfgang Roeck said, "Our goal is to develop a vibrant destination, which encompasses the best of Munich’s tradition and innovation in the form of a new high-quality mixed use development, designed to appeal to the city’s residents and international visitors alike."
"We are delighted to be partnering with Mandarin Oriental to create sought-after branded residences and to expand Munich’s most luxurious hotel," Roeck added.