Mandarin Oriental Hotel Group has today announced that it will manage a new, luxurious hotel currently under development in the historic centre of Prague in the Czech Republic. The project provides the Group with a unique opportunity to establish its luxury brand in one of Europe's foremost travel destinations.

Mandarin Oriental, Prague will be a chic 98-room hotel, to be housed in an exceptionally beautiful building that began life as a monastery in the 14th Century. Ideally located in the heart of Prague's rich historic centre, in the Mala Strana district, the hotel is within easy walking distance of the city's major tourist attractions including Prague Castle, the largest ancient castle in the world, the beautiful 600-year-old Charles Bridge and the many museums and theatres for which Prague is famous. From the hotel, guests will be able to stroll amongst the city's celebrated and breathtaking Gothic, Romanesque, Baroque and Art Nouveau architecture, while also enjoying Prague's elegant riverside promenades and cafe-lined squares.

Opening in early 2006, Mandarin Oriental, Prague has been designed as an intimate, luxurious hotel featuring a contemporary, yet elegant interior style, with exacting attention to detail, reflective of the Group's oriental heritage. The hotel will feature the city's most spacious and luxurious guest rooms which have been designed in a variety of individual interior styles, taking full advantage of the exceptional proportions of the existing building. All guestrooms will offer Mandarin Oriental's renowned customer-centric technology that will provide guests with highly sophisticated in-room entertainment systems. An all-encompassing spa and fitness center will be a prominent feature, reflective of the Group's spa expertise, both in design and service. Fashionable, stylish dining with culinary flair will be offered via chic restaurant, bar and lounge concepts. The hotel will also provide elegantly designed meeting and banqueting facilities.

"We are delighted at the prospect of opening a new hotel in the lively and sophisticated historic city of Prague and look forward to bringing Mandarin Oriental's renowned levels of hospitality to this exciting project. The pre-eminence of the site and the vibrancy of the surrounding neighborhood bode well for success. This new development also represents another significant step for Mandarin Oriental in leveraging our brand further in important destinations around the world.' said Mandarin Oriental Hotel Group's Chief Executive, Edouard Ettedgui.

"We welcome Mandarin Oriental Hotel Group to Prague and to what promises to be the city's most exclusive luxury hotel address. We are certainly pleased to have Mandarin Oriental as an operator as their philosophy mirrors our desire to achieve an extraordinary level of quality, a precise attention to detail and a total focus on the customer," said Richard Horton, Managing Director of Karmelitska Hotel s.r.o.

The project represents a further step in the Group's development strategy of operating over 10,000 rooms in major business centres and key leisure destinations around the world. Mandarin Oriental is the award-winning owner and operator of some of the world's most prestigious hotels and resorts, currently operating 20 luxury hotels with six additional hotels under development. As well as Prague, the Group will open hotels in Chiang Mai, Northern Thailand (late 2004), Hong Kong, Riviera Maya, Mexico and Tokyo (2005) and in Boston (2007). In total, Mandarin Oriental now operates, or has under development, some 7,800 rooms in 14 countries with 12 hotels in Asia, nine in The Americas and five in Europe.