I don’t believe the condos are part of this sale. So, it’s the 392 hotel rooms/suites, the restaurants, the spa, and the couple of meeting rooms/ballroom. Sometimes, hotels will contract out some of their facilities like restaurants or spas. If that’s the case here, those spaces probably wouldn’t be huge sources of revenue for the new owner.

At $214 million, that’s about $546k per room. According to this 2015 source, the average cost of a newly built luxury property was $705k per room. Unfortunately, I couldn’t find figures on resales of luxury hotels.

Without knowing the details, it’s hard to know if this sale was a bargain. It’s possible that the hotel is in need of renovation. It opened in November 2009. Additionally, we don’t even know if the hotel is profitable. To say it has stiff competition would be an understatement. I wouldn’t be shocked to find out that the Mandarin Oriental is losing money. If it is, that might explain for the purchase price.

Source: https://www.boutique-hospitality.com/how-much-does-it-costs-to-build-a-hotel-2015/

Keep in mind half the building, the condo floors, would not be included in this deal. When I worked at this hotel I know for years they did not make any money. It’s hard to offer the Mandarin Oriental services/expectations with the lower prices you have to charge to compete with the strip.

By the way, props for this blog, love it.