Reliance buys iconic hotel Mandarin Oriental New York
New Delhi/UNI: Mukesh Ambani-led Reliance Industries Ltd (RIL) on Saturday announced that one of its group firms has signed a $ 98.15 million deal to acquire a Cayman Islands firm that owns iconic luxury hotel Mandarin Oriental New York in New York City.
Mandarin Oriental New York is an iconic luxury hotel located at 80 Columbus Circle, directly adjacent to Central Park and Columbus Circle.
The hotel had a revenue of $ 115 million in 2018, $ 113 million in 2019 and $ 15 million in 2020, as per a late night stock exchange filing by RIL.
"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 UK and is developing state-of-the-art convention centre, hotel and managed residences in BKC Mumbai," RIL said.
The transaction is expected to complete by the end of March 2022 subject to certain customary regulatory and other approvals.
Reliance Industrial Investments and Holdings Ltd (RIIHL), a wholly owned subsidiary of 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.
"In the event that the other owners of the hotel elect to participate in the sale transaction, RIIHL would acquire the remaining 26.63 percent, based on the same valuation used for the acquisition of the indirect 73.37 percent stake," Reliance said.