Home Hotel industry Mukesh Ambani’s Reliance Industries to Acquire Mandarin Oriental Luxury Hotel in New...

Mukesh Ambani’s Reliance Industries to Acquire Mandarin Oriental Luxury Hotel in New York for $ 98.15 Million

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Billionaire Mukesh Ambani’s Ltd on Saturday announced the acquisition of New York’s upscale luxury hotel Mandarin Oriental for $ 98.15 million.

Established in 2003, the Mandarin Oriental New York is an iconic luxury hotel located at 80 Columbus Circle, right next to pristine Central Park and Columbus Circle.

“Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly owned subsidiary of Reliance Industries Limited (RIL), today entered into an agreement to acquire all of the issued share capital of Columbus Center Corporation (Cayman), a company incorporated in the Cayman Islands and indirectly owns a 73.37 percent stake in Mandarin Oriental New York, one of New York City’s upscale luxury hotels for an equity consideration of approximately 98 , $ 15 million, “the company said in a stock exchange document.

This is the second acquisition of an iconic hotel by Reliance in less than a year.

In April last year, Reliance acquired Stoke Park Ltd in the UK – an iconic location that served as the setting for two James Bond films. The two iconic locations are in addition to its current stake in the Oberoi hotels and the hotel / managed residences in Mumbai that it is developing.

Over the past five years, Reliance has announced $ 5.6 billion in acquisitions, 45% of which in TMT and 23.6% in new energies.

The Mandarin Oriental New York is recognized globally and has won several influential awards including the AAA Five Diamond Hotel, Forbes Five Star Hotel, and Forbes Five Star Spa, among others. It had revenue of $ 115 million in 2018, $ 113 million in 2019 and $ 15 million in 2020, according to the Reliance filing.

“This acquisition will strengthen the group’s consumer and hospitality footprint. The group already has investments in EIH Ltd (Oberoi Hotels), Stoke Park Limited in UK and is developing a convention center, hotel and managed residences at BKC Mumbai, ”he said.

The transaction is expected to close by the end of March 2022 and is subject to certain customary regulatory and other approvals and the satisfaction of certain other conditions.

“In the event that the other owners of the hotel choose to participate in the sale transaction, RIIHL will acquire the remaining 26.63 percent, based on the same valuation used for the acquisition of the indirect interest of 73.37 percent, “he added.

RIIHL announced in April last year that it had acquired all of the issued share capital of Stoke Park Limited, a UK-incorporated company, for £ 57million. Facilities include a hotel, conference rooms, sports facilities and one of the top rated golf courses in Europe.

Reliance currently has investments in EIH Ltd in addition to the development of a convention center, hotel and managed residences in Mumbai.


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