Olan Group, owned by the Saudi-born Olayan family, completed a major move by purchasing the Mandarin Oriental Hotel in Barcelona from the Reig family of Andorra and the North American Farallon fund. While the exact price was not publicly disclosed, several outlets previously reported a asking price around 240 million euros for the premium property.
For months, and sometimes years, there have been rumors of a sale. In 2020, after the Covid-19 outbreak, Farallon acquired the Reig family’s debt amounting to more than 450 million from CaixaBank. The owners and creditors then pursued a sale but struggled to attract a buyer willing to meet their terms. In 2023, the process was relaunched with coordinated oversight from London, and the chatter shifted toward a more favorable outcome, as noted by El Economista. The deal signaled a record in the Spanish hotel market, with falls in the room-level price being discussed as a benchmark for luxury assets. Madrid has seen hotel complexes trade at over a million euros per room, but the Barcelona target was positioned as a new high point for the sector.
The Mandarin Oriental Barcelona sits at a coveted address along Passeig de Gràcia, specifically numbers 38 to 40, and has been welcoming guests since its doors opened in 2010. The property comprises 120 rooms and suites, with accommodation spaces crafted by renowned designer Patricia Urquiola. Features such as the spa and the rooftop pool offer panoramic views of the city, enhancing its appeal for luxury travelers seeking exclusive experiences.
JLL served as advisor to Reig Capital in the transaction. In a formal statement, the firm noted strong investor interest in the asset despite a challenging market environment. It highlighted the growing shift of luxury hotels toward corporate ownership structures and the evolving consumer preferences that are creating new investment opportunities for premium properties.
Olaya Group expands its Barcelona footprint
Eight years after the Olayan family made a landmark entrance into Barcelona with a notable acquisition, the group has now completed another strategic move in the city. Previously, the family had stakes in the Ritz Madrid project, and in 2015 they acquired a 50 percent interest in the Mandarin complex along with a link to the historic Ritz in Madrid. The partnership placed the property within a broader hospitality portfolio under the Olayan umbrella, marking a significant milestone in their European hotel strategy.
The investment vehicle associated with the Olayan family, established by prominent Saudi businessman Suliman S. Olayan, began with a modest fleet of trucks before expanding into various sectors such as food, insurance brokerage, pulp production, and energy. Today, the family maintains a diversified real estate portfolio that includes tens of thousands of residential units and millions of square feet of office and commercial space across global markets. The group’s influence extends to iconic properties, including the Ritz in Madrid and the Mandarin in Barcelona, along with other premium assets headquartered in major centers such as New York and Paris.
The Mandarin Oriental Barcelona continues to be viewed as a defining asset within the group’s European holdings. Its location, design pedigree, and high-end amenities position it as a centerpiece for investors seeking exposure to luxury hospitality in one of Europe’s most visited urban landscapes. This acquisition underscores a broader trend where luxury hotels attract capital from sovereign- and family-led investment vehicles, reinforcing Barcelona’s status as a focal point for international hotel activity.