Luxury hotelier Mandarin Oriental and Saudi Arabia-based Olayan Group have agreed to buy the 115-year-old Hotel Ritz in Madrid for $148 million.

The current ownership group includes Belmond (formerly Orient-Express). 

Mandarin Oriental and Olayan said they will invest $103 million upgrading the property in 2017.

Mandarin Oriental has one other hotel in Spain, the 120-room Mandarin Oriental Barcelona, which was built in 2008.

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