Reliance Industries buys New York luxury hotel Mandarin Oriental for $98.15 million

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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 UK

Representative image. AFP

New Delhi: Reliance Industries Ltd, of billionaire Mukesh Ambani, announced on Saturday the acquisition of the luxury New York hotel Mandarin Oriental for 98.15 million dollars.

Founded in 2003, Mandarin Oriental New York is an iconic luxury hotel located at 80 Columbus Circle, just off Central Park and Columbus Circle.

“Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly owned subsidiary of Reliance Industries Limited (RIL), today entered into an agreement to acquire all of the issued share capital of Columbus Center Corporation (Cayman), a company incorporated in the Cayman Islands and indirect owner of a 73.37% stake in Mandarin Oriental New York, one of New York’s high-end luxury hotels, for equity consideration of approximately $98.15 million. dollars,” the company said in a public filing.

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 UK, an iconic location which has been the setting for two James Bond films. The two iconic locations are in addition to its current stake in Oberoi Hotels and the hotel/managed residences in Mumbai that it is developing.

Over the past five years, Reliance has announced $5.6 billion in acquisitions, with 45% in TMT and 23.6% in new energy.

Mandarin Oriental New York enjoys worldwide recognition and has won several influential awards, including AAA Five Diamond Hotel, Forbes Five Star Hotel, and Forbes Five Star Spa, among others. It made $115 million in revenue in 2018, $113 million in 2019 and $15 million in 2020, according to the Reliance filing.

“This acquisition will strengthen the group’s consumer and hospitality footprint. 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 at BKC Mumbai,” he said.

Closing of the transaction is expected 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.

“In the event that the other owners of the hotel choose to participate in the sale transaction, RIIHL would acquire the remaining 26.63%, based on the same valuation used to acquire the 73.37 indirect interest. %”, he added.

RIIHL had announced in April last year the acquisition of the entire issued share capital of Stoke Park Limited, a UK incorporated company, for £57 million. Facilities include a hotel, conference rooms, sports facilities and one of Europe’s top rated golf courses.

Reliance currently has investments in EIH Ltd in addition to the development of a convention centre, hotel and managed residences in Mumbai.

Disclaimer: Moneycontrol and Firstpost are part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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