Reliance Industries Limited said on Saturday that it has entered into a deal to acquire Mandarin Oriental, a premium luxury hotel in New York, for an equity consideration of around $98.15 million. Reliance Industrial Investments and Holdings Limited, a wholly owned subsidiary of RIL, has today, 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 per cent stake in Mandarin Oriental New York, one of the premium luxury hotels in New York City for an equity consideration of approximately $98.15 million, Mukesh Ambani-owned company said in a statement.
Established in 2003, Mandarin Oriental New York is an iconic luxury hotel located at 80 Columbus Circle, close to the famous Central Park and Columbus Circle. The hotel garnered revenues of $115 million in 2018, $113 million in 2019 and $15 million in 2020.
This acquisition will help Reliance Industries to expand 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 manged residences in BKC Mumbai.
“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. In the event that the other owners of the hotel elect to participate in the sale transaction, RIIHL would acquire the remaining 26.63 per cent, based on the same valuation used for the acquisition of the indirect 73.37 per cent stake,” RIL said.
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