Ambani's Reliance Buys New York's Iconic Luxury Hotel Mandarin Oriental For $98.15 Million
Mandarin Oriental New York, one of New York City's premium luxury hotels, was opened in 2003 at 80 Columbus Circle, just near the beautiful Central Park and Columbus Circle.
After buying the UK's iconic Stoke Park, billionaire Mukesh Ambani's Reliance has agreed to acquire the US luxury hotel Mandarin Oriental New York for $98.15 million.
The deal was done through Reliance Industries wholly-owned subsidiary Reliance Industrial Investments and Holdings Limited (RIIHL), 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 for $98.15 million.
Mandarin Oriental New York, one of New York City's premium luxury hotels, was opened in 2003 at 80 Columbus Circle, just near the beautiful Central Park and Columbus Circle.
It is well-known worldwide and has received numerous prestigious honors, including the AAA Five Diamond Award, Forbes Five Star Hotel, and Forbes Five Star Spa.
Amid the pandemic, hotels' revenue fell to $15 million in 2020 from $113 million in2019 and $115 million in 2018.
This acquisition will expand Reliances' consumer and hospitality footprint. Reliance has already invested in EIH Ltd (Oberoi Hotels) and is building a state-of-the-art convention center, hotel, and managed homes in BKC Mumbai.
The transaction is expected to close by the end of March 2022, subject to customary regulatory and other approvals, as well as the satisfaction of certain additional conditions, said a company statement.
As part of the deal, Reliance will have the option to buy the additional 26.63% stake from the hotel's other owners at the same valuation for this deal if they decide to sell.
Mayer Brown LLP acted as legal counsel for Reliance on the transaction.
The acquisition is not a related party transaction, and none of RI L's promoter/ promoter group/ group companies have any interest in the entities involved in the transaction, said Reliance in a regulatory filing.
On Friday, Reliance shares on BSE closed up 0.8% at Rs 2435.95 in a firm Mumbai market, valuing the company at Rs 16.47 trillion.
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