Indian billionaire Mukesh Ambani’s Reliance Industries Ltd (RIL) announced the acquisition of New York’s premium luxury hotel Mandarin Oriental for close to $100 million on Sunday.
The Mandarin Oriental New York, situated at 80 Columbus Circle, is a luxury hotel commissioned in 2003. It was bought by Ambani-led RIL’s wholly-owned subsidiary Reliance Industrial Investments and Holdings Limited (RIIHL) for $98.15 million.
The firm said in a stock exchange filing, “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 percent 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”.
Notably, 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 United Kingdom.
The filing further said, “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”.
“In the event that the other owners of the hotel elect to participate in the sale transaction, RIIHL would acquire the remaining 26.63 percent, based on the same valuation used for the acquisition of the indirect 73.37 percent stake,” it added.
The closing of the transaction is expected to be done by the end of March 2022 and is subject to certain customary regulatory and other approvals and the satisfaction of a few other conditions.