Saudi Arabian conglomerate The Olayan Group, in a 50/50 joint venture with Mandarin Oriental International Ltd, is to acquire the Hotel Ritz Madrid in Spain for €130 million (€778,400 per room) from Belmond Spanish Holdings and Landis Inversiones. HVS London was pleased to advise Mandarin Oriental on the transaction. Mandarin will manage the 167-room hotel, which dates back to 1910, under a long-term contract. Following its sale, the hotel, in one of the city's exclusive residential areas, is expected to undergo an extensive renovation estimated to cost €90 million, which will increase the purchasers' total investment in the property to more than €1.3 million per room.