Situated in the centre of the Left Bank area of the French capital, the Art Deco institution was opened in 1910 and owes its existence to its neighbour Bon Marche, one of the first department stores in the world.
Israeli real estate group Alrov, controlled by Alfred Akirov and his family, will retain ownership of the building.
Originally baptised with the Roman name for Paris, the hotel has now been renamed Mandarin Oriental Lutetia.
The Akirov family and Laurent Kleitman, chief executive of Mandarin Oriental Hotel Group, took part in an inauguration ceremony, unveiling a plaque on the hotel’s facade in the colours of the Asian company.
Jean-Pierre Trevisan, the hotel’s director, said the deal “will give us visibility in areas that we are not familiar with, such as Asia”.
Financial details of the management contract were not disclosed. A source familiar with the matter said it was a “very long-term commitment”.