The iconic heritage luxury hotel of Hotel Palace Luzern (Lucerne) located right on Lake Lucerne was acquired in 2015 by the Chinese investor Yunfeng Gao, who commissioned an extensive refurbishment and renovation of the listed building. With an estimated re-opening at the end of 2020, the hotel will boast 147 rooms and suites with two restaurants, including a fine dining one.
According to reports by several Swiss media even quoting Swiss Deluxe Hotels, an association of the Swiss luxury hotels, the owners are in very advanced discussions with Mandarin Oriental Hotel Group for a long-term third party agreement to manage the iconic hotel.
It would come as a surprise given the limited potential of Lucerne as a destination, with modest ADRs, the market presently being dominated by the immense project of Burgenstock Resort (an investment of reportedly half billion euros) part of Burgenstock Selection, a chain of 3 luxury hotels fully owned and operated by Qatar’s Katara Hospitality, one of the world’s leading luxury hotel asset owners and managers.
Recently, Mandarin Oriental has been stepping up its international expansion with rather surprising properties such as a small boutique hotel in Beijing (73 keys) and the 75 key Mandarin Oriental Lago di Como, which was a three month ‘conversion’ of the property previously known as CastaDiva. The ‘conversion’ was actually a ‘refresh’ rather than a renovation / redesign, with a minimal investment from the owners.
Lake Como is not only a very seasonal market but also a destination dominated by Villa d’Este considered as a ‘institution’ luxury hotel which not only runs high occupancy rates all-year round but also the highest rates of the destination. Over half of Como’s luxury hospitality is covered by luxury villa rentals, some serviced.
Mandarin Oriental Hotel Group declined to comment.
Hotel Palace Luzern
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