HAMILTON, Bermuda -- Orient-Express Hotels said it acquired the
Hotel Ritz in Madrid for $135 million in a joint venture with
Spanish investment firm Omega Capital. Orient-Express will operate
the 167-room hotel under a long-term management contract.
As part of the agreement, the two companies plan to invest
approximately $25 million to upgrade the hotel and add facilities,
including a spa, a dining terrace and additional meetings
space.
The Hotel Ritz is located near several of Madrid's cultural
attractions and parks, including the Prado and Thyssen museums, the
Botanical Gardens and Retiro Park.
Opened in 1910, the hotel was the brainchild of King Alfonso
XIII, who wanted Madrid to have a luxury hotel that would rival the
Ritz in Paris.
About 60% of the hotel's clientele are business travelers. The
hotel's facilities include 30 suites and the popular Ritz Terrace,
a 66-seat restaurant in a garden setting.
The Ritz is Orient-Express Hotels' second property in Spain. It
acquired La Residencia in Mallorca in February 2002.