Reliance Industries to buy 73% stake in Mandarin Oriental New York hotel
The Mukesh Ambani led Reliance Industries Limited is set to acquire a 73.37% stake in Mandarin Oriental New York, a luxury hotel in New York City for about $98.15 million.
The transaction will be carried out by the Indian conglomerate’s fully-owned subsidiary — Reliance Industrial Investments and Holdings Limited (RIIHL). It will be through the acquisition of Columbus Centre Corporation (Cayman), which holds the indirect stake in the luxury hotel in New York City.
Opened in 2003, Mandarin Oriental New York is located at 80 Columbus Circle near Central Park and Columbus Circle. The luxury hotel had posted revenue of $115 million in 2018, $113 million in 2019, and $15 million in 2020.
According to Reliance Industries, the acquisition will consolidate its consumer and hospitality footprint. The Indian conglomerate has investments in EIH Ltd (Oberoi Hotels) and Stoke Park Limited in the UK apart from developing a convention centre, hotel and managed residences in the Bandra Kurla Complex in Mumbai.
The deal, which is subject to certain regulatory approvals, other approvals, and other conditions, is expected to close by the end of March 2022.
Reliance Industries said that in the case of other stakeholders of Mandarin Oriental New York electing to take part in the sale transaction, then RIIHL will acquire the remaining 26.63%, based on the same valuation.