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In a city where towers come down as easily as they go up, a 25-year-old luxury hotel in Miami is closing and will be demolished. Even Will Smith and Penelope Cruz weren’t enough star power to keep it going.

The Mandarin Oriental on Brickell Key, which opened in 2000 and known as one of the fanciest places of its time, will shutter May 31, 2025. Construction of a new hotel by the same owners will begin next year after the demolition in the first half of 2026. A residential tower will also be built on the property.

Plans call for The Residences at Mandarin Oriental, Miami, to open in 2030. The complex will be a mix of hotel rooms and private residences. with the developers catering to the high-end luxury condo market and the super wealthy.

The north tower will include the new Mandarin Oriental hotel. That building will have 121 guest rooms and suites, about a third of the 326 rooms in the hotel that will be demolished.

“For an urban luxury resort, 110-150 [rooms] is the sweet spot,” Henry Bott, president of owner and developer Swire Properties, said in an interview with the Miami Herald. “Larger than that, it becomes a more conventional hotel.”

The hotel tower will also have private residences: 66 condos and another 28 fully furnished units that the buyer can put back in the rental pool with the Mandarin and share revenue with the company.

Focusing on adding private residences and reducing number of hotel rooms “creates a more luxurious product,” Bott said.

Travelers can expect new amenities including large pools; a three-level, 100,000-square-foot outside area connecting the two towers called The Podium; and a spa.

“We’ll have a signature spa with all the latest elements of wellness,” Francesco Cefalu, chief development officer for the Mandarin Oriental Hotel Group, said in an interview with the Herald. The Mandarin worldwide is known for its spa service. But it’s also known for its cake shop in the lobby.

The south tower, which will rise at the same time, will have 228 condos that are already for sale. Price ranges from $4.9 million to $100 million for the penthouse. About half the units have been purchased, surpassing a $1 billion in sales, Bott said.

The priciest units sold so far exceeded $3,000 per square feet, a metric used to compare neighborhoods. As a reference, the median listing home price per square foot in April in next door Brickell was $769, according to data from Realtor.com, a national real estate listings and analytics firm.

Amenities for residential owners are plentiful and include a private movie screening room and sports for children.

The future and the past of the Mandarin Oriental

The Residences at Mandarin Oriental, Miami is a joint project between the Mandarin Group, the hotel operator, and Swire Properties, the majority shareholder. Swire is putting $1 billion into the project.