Mandarin Oriental Hotel Group to Go Private in $4.2B Buyout

Hong Kong–based conglomerate Jardine Matheson Holdings has announced plans to acquire the remaining 11.96 percent stake in Mandarin Oriental Hotel Group, marking a full buyout that will take the luxury hotel group private.

The deal assigns an estimated valuation of $4.2 billion to Mandarin Oriental’s total issued share capital.

Jardine Matheson offered $3.35 for each Mandarin Oriental share, which includes $2.75 in cash plus a special dividend of $0.60 per share funded by the recent sale of Mandarin Oriental’s One Causeway Bay office property in Hong Kong.

The transaction will be executed through a scheme of arrangement under Bermuda law and is expected to close by February 28, 2026, pending regulatory approvals.

On the same day as this announcement, Mandarin Oriental revealed an agreement to sell the top 13 floors of its flagship One Causeway Bay complex to Alibaba Group and Ant Group for $925 million.

Alibaba plans to use the space as its Hong Kong headquarters, complete with rooftop signage and parking.

Proceeds from the sale will help fund the special dividend distributed as part of Jardine Matheson’s acquisition offer.

Mandarin Oriental currently operates 43 hotels, 12 branded residences, and 26 luxury homes across 27 regions.

Recently, the company has emphasized its North American redevelopment strategy, which includes workforce adjustments and property renovations, such as its Miami location.

By taking the brand private, Jardine Matheson aims to simplify decision-making, refocus its portfolio, and enhance support for long-term growth and expansion.

Following the announcement, Mandarin Oriental’s shares jumped 36 percent, reflecting investor optimism over the premium price offered. Jardine Matheson plans to fund the buyout using a mix of existing cash reserves and committed financing lines.

For more context on how hotel ownership and management models influence global hospitality trends, read our article on hotel groups.

Photo by Zoshua Colah on Unsplash