Industry

Reliance arm to acquire New York city luxury hotel

Photo used for representation purpose only.

Photo used for representation purpose only.

The Reliance Industries Ltd. (RIL) on January 8 late night said the Reliance Industrial Investments and Holdings Ltd (RIIHL), its wholly owned subsidiary, had entered into an agreement to acquire the entire share capital of the Columbus Centre Corporation (Cayman), and the indirect owner of a 73.37% stake in the Mandarin Oriental New York, a premium luxury hotel for $ 98.15 million.

Set up in 2003, the Mandarin Oriental New York is an iconic luxury hotel located at 80 Columbus Circle, directly adjacent to the pristine Central Park and Columbus Circle in New York city.

It had revenues of $115 million in 2018, $113 million in 2019 and $15 million in 2020.

“This acquisition will add to the consumer and hospitality footprint of the group,” the RIL said in a filing with stock exchanges.

The Reliance Industries Group, led by Mukesh Ambani, already has investments in the EIH Ltd. (Oberoi Hotels), the Stoke Park Limited in U.K. and is developing state-of-the-art convention centre, hotel and managed residences in BKC Mumbai.

The closing of the transaction of the Mandarin Oriental deal is expected by the end of March 2022.

The RIIHL has also offered to buy out the other shareholders of the hotel and said it would acquire the remaining 26.63%, based on the same valuation used for the acquisition of the indirect 73.37% stake.


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Printable version | May 17, 2022 2:49:20 pm | https://www.thehindu.com/business/Industry/reliance-buys-new-yorks-luxury-hotel-mandarin-oriental-for-9815-million/article38196799.ece