homebusiness Newscompanies NewsReliance Industries buys New York's premium luxury hotel Mandarin Oriental for $98.15 million
Reliance Industries buys New York's premium luxury hotel Mandarin Oriental for $98.15 million
Mandarin Oriental New York 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.
Reliance Industries Ltd (RIL) on Saturday announced the acquisition of New York's premium luxury hotel Mandarin Oriental for $98.15 million. Mandarin Oriental New York is an iconic luxury hotel located at 80 Columbus Circle is directly adjacent to the pristine Central Park and Columbus Circle. It was set up in 2003.
"Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly owned subsidiary of Reliance Industries Limited (RIL), 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 percent stake in Mandarin Oriental New York, one of the premium luxury hotels in New York City for an equity consideration of approximately US $98.15 million," the firm said in a stock exchange filing.
This is the second acquisition of an iconic hotel by billionaire Mukesh Ambani's oil-retail-telecom conglomerate in less than a year. In April 2021, Reliance acquired Stoke Park Ltd in the UK. The two iconic locales add to its current stake in Oberoi hotels and hotel/managed residences in Mumbai that it's developing.
Mandarin Oriental New York 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, according to the Reliance filing.
"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," it said.
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.
RIL stock price settled at Rs 2,439.90 on NSE, up 0.97 percent on Friday.
With inputs from PTI
Disclosure:
Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
First Published: Jan 9, 2022 3:10 PM IST
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