Mandarin Oriental has acquired the Hotel Ritz in Madrid.
The hotel company spent £93 million (€130 million) for the prestigious property, which it has bought in a joint venture with Saudi Arabian multi-national The Olayan Group.
Both firms will hold a 50 per cent share of the 167-room hotel, which first opened in 1910 and will undergo a £64 million (€90 million) renovation in 2017.
The works will include the refurbishment of all rooms and public areas, as well as introducing a spa and new restaurants and bars.
The property is close to Madrid's financial and commercial district, as well as a number of cultural attractions, including the Prado Museum and Retiro Park.
Edouard Ettedgui, group chief executive of Mandarin Oriental, said: "We are pleased to join with Olayan for this project, which presents an opportunity to extend our portfolio to another key European capital city."
Mandarin Oriental guests who create an online profile and book published rates on the hotel group's website receive free high-speed wifi (see news, November 2013).