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Billionaire business magnate Mukesh Ambani-led Reliance Industries Ltd on Sunday entered into an agreement to acquire New York’s premium luxury hotel Mandarin Oriental for $ 98.15 million. In a statement, Reliance Industrial Investments and Holdings Limited (RIIHL) announced that the acquisition was intended to add the consumer and hospitality footprint of the group.
The closing of the transaction is expected to be completed by the end of March 2022, subject to certain customary, regulatory and other approvals.
“Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), has today, entered into an agreement to acquire the entire issued share capital of Columbus Centre Corporation (Cayman), a company incorporated in the Cayman Islands and the indirect owner of a 73.37 per cent stake in Mandarin Oriental New York, one of the premium luxury hotels in New York City for an equity consideration of approximately USD 98.15 million,” the firm said in a stock exchange filing.
“This acquisition will add to the consumer and hospitality footprint of the group. The group already has investments in EIH Ltd (Oberoi Hotels), Stoke Park Limited in the UK and is developing a state-of-the-art convention centre, hotel and managed residences in BKC Mumbai,” it added stating that in the event that the other owners of the hotel elect to participate in the sale transaction, RIIHL would acquire the remaining 26.63 per cent based on the same valuation used for the acquisition of the indirect 73.37 per cent stake.
About Mandarin Oriental New York
Located near the iconic Central Park, the luxury hotel Mandarin Oriental New York was set up in 2003 at 80 Columbus Circle. Over the last two decades, it has attained global recognition and has won several influential awards, including AAA Five Diamond Hotel, Forbes Five Star Hotel, and Forbes Five Star Spa, among others. According to the Reliance filing, Mandarin Oriental had revenues of $115 million in 2018, $113 million in 2019 and $15 million in 2020.
This is the second big acquisition by Reliance Industries in less than a year. In April 2021, RIHL purchased the prime property in the United Kingdom for a whopping Rs 592 crore. “This acquisition will add to the fast-growing consumer business of the group. Simultaneously, it will also expand the footprint of India’s famed hospitality industry globally,” it said in a statement.
