Blackstone to Buy Paris Luxury Stores From Mandarin Oriental

Funds managed by Blackstone Inc. agreed to buy two luxury stores adjoining the Mandarin Oriental hotel in Paris, the latest sign the private equity firm is taking tentative steps back into brick-and-mortar retail.

The funds will pay €148 million ($159 million) for 251 rue Saint-Honore, according to a statement from the hotel operator published Wednesday. Earlier this year, Mandarin Oriental International Ltd. agreed to sell the adjoining hotel to Statuto Group for €205 million.

The deal follows Blackstone’s acquisition of a property on London’s New Bond Street in April for £230 million ($293 million). The world’s biggest alternative asset ...