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Mukesh Ambani-backed Reliance Industries has acquired majority shares of luxury hotel Mandarin Oriental New York for $98.5 million .
The deal has been done through Reliance Industrial Investments and Holdings Ltd (RIIHL), a wholly-owned subsidiary of Reliance Industries Led. RIIHL has 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 $ 98.15 million.
Set up in 2003, Mandarin Oriental New York is an iconic luxury hotel located at 80 Columbus Circle, directly adjacent to the pristine Central Park and Columbus Circle.
It has global recognition and has won several influential awards including AAA Five Diamond Hotel, Forbes Five Star Hotel, and Forbes Five Star Spa, among others. It had revenues of $ 115 million in 2018, $ 113 million in 2019 and $ 15 million in 2020.
This acquisition will add to the consumer and hospitality footprint of the group. RIL already has investments in EIH Ltd (Oberoi Hotels), Stoke Park Limited in UK and is developing state-of-the-art convention centre, hotel and manged residences in BKC Mumbai.
“The closing of the transaction is anticipated to occur by the end of March 2022 and is subject to certain customary regulatory and other approvals and the satisfaction of certain other conditions,” the company said in a statement. In the event that the other owners of the hotel elect to participate in the sale transaction, RIIHL would acquire the remaining 26.63%, based on the same valuation used for the acquisition of the indirect 73.37 per cent stake.
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