Bermudian-incorporated Mandarin Oriental International Ltd, the publicly listed parent company of Mandarin Oriental Hotel Group, has announced that it has, pursuant to a preliminary sale agreement, signed an option to sell its interests in Mandarin Oriental, Paris to SLH Hotels Srl for €205 million ($224 million).

The company said the proceeds will be applied towards the group's general development strategy.

The group will retain a long-term management agreement to manage and brand the hotel.

The company said the group's acceptance of the offer for its interests in the hotel is subject to completion of a consultation process with the relevant Works Council.

Subject to that process and to the statutory right of pre-emption by the City of Paris, among other conditions, it is anticipated that final documentation will be signed and completion of the sale of the hotel will take place on or after March 31.

Laurent Kleitman, group chief executive of Mandarin Oriental Hotel Group, said: "Since opening in 2011, Mandarin Oriental, Paris has been one of the leading luxury hotels in the city and is a designated Palace hotel.

“We look forward to working with the Statuto Group, which is also the owner of Mandarin Oriental, Milan, in continuing to deliver the award-winning service and luxury experiences for which Mandarin Oriental is renowned."

Mandarin Oriental Hotel Group is the award-winning owner and operator of some of the world's most luxurious hotels, resorts and residences.

Having grown from its Asian roots into a global brand, the group now operates 38 hotels and ten residences in 25 countries and territories.

Mandarin Oriental International Ltd is incorporated in Bermuda and has a primary listing in the standard segment of the London Stock Exchange, with secondary listings in Bermuda and Singapore. Mandarin Oriental is a member of the Jardine Matheson Group.