Reliance Industrial Investments and Holdings Ltd (RIIHL), a wholly-owned subsidiary of Reliance Industries Led has entered into a $98.15 million deal to acquired majority shares of luxury hotel Mandarin Oriental New York.
Through it’s subsidy, Mukesh Ambani-backed Reliance Industries will acquire the entire issued share capital of Columbus Centre Corporation (Cayman), a company incorporated in the Cayman Islands which is indirectly owning 73.37 per cent stake in Mandarin Oriental New York.
Set up in 2003, Mandarin Oriental is an iconic the premium luxury hotels in New York City located at 80 Columbus Circle, directly adjacent to the pristine Central Park and Columbus Circle. Having won awards like AA Five Diamond Hotel, Forbes Five Star Hotel, and Forbes Five Star Spa, it has earned global recognition. The hotel had revenues of $ 115 million in 2018, $ 113 million in 2019 and $ 15 million in 2020.
With this acquisition, RIL adds another jewel in their treasure of the consumer and hospitality sector. It has already made investments in EIH Ltd (Oberoi Hotels), Stoke Park Limited in UK. It is also in the process of developing state-of-the-art convention centre, hotel and managed residences in BKC Mumbai.
The transaction is anticipated to be completed by the end of March 2022. RIIHL may acquire the remaining 26.63%, based on the same valuation in case other owners of the hotel participate in the sale transaction.