Mandarin Oriental New York – Market Review for the Development of an Upscale Property on Columbus Circle in New York City (United States)
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Mandarin Oriental New York – Market Review for the Development of an Upscale Property on Columbus Circle in New York City (United States)
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Category: North America & West Indies / Carribean islands - United States - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2009-02-20
Project
The Mandarin Oriental Hotel Group owns and/or manages more than twenty luxury hotels worldwide. In 1999, the company was developing plans for a proposed hotel on Columbus Circle in Midtown Manhattan and commissioned HVS International to perform a market review. Mandarin enjoyed an excellent reputation in New York, and its organization was extremely optimistic about the project. However, there were question marks concerning achievable rates in this location. At that time, the condition of the neighborhood was rather grim, with low-end shops and fast-food restaurants – not exactly on a par with Fifth Avenue.
The HVS Assignment
HVS International’s initial report was supportive of Mandarin's viewpoint. Demand generators indicated that a Mandarin Oriental hotel would do well in that location and, in fact, would provide the impetus to significantly improve the neighborhood. A leap of faith was necessary, as the investment in the project amounted to many millions of dollars, but overall commitment to the venture was positive. The project was under construction when 9/11 hit. Suddenly, the outlook was not as positive, and internal discussions and concerns about the future of the market arose at Mandarin. A final appraisal was required from HVS to evaluate the development from a lending standpoint. In an atmosphere of general uncertainty, the prospect given by HVS’ study was an optimistic one, predicting an early recovery of the market.
The Result
Now entering its third year of operations, the Mandarin Oriental New York is exceeding all projections in terms of RevPAR. HVS' work was instrumental in helping Mandarin’s management make a decision – to go forward with the development – and it turned out to be even more successful than anticipated. Mandarin Oriental is pleased with the results of the whole project and with its working relationship with HVS. Mandarin continues to employ the global services of HVS, including Executive Search, and is extremely satisfied with this arrangement.
Mandarin Oriental is best defined as a family of individual hotels and resorts, each with its own distinct personality, yet inherently linked to its exotic oriental roots. Our luxury brand strives to delight our guests by providing service that is gracious and sincere and steeped in the values of the orient.
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