Billionaire Mukesh Ambani's Reliance Industries is paying $98.15 million to buy controlling stake in New York's premium luxury five-star hotel Mandarin Oriental, the company said.
RIL's investments subsidiary, Reliance Industrial Investments and Holdings Ltd will acquire the entire stake from Cayman Islands-based Columbus Centre Corp (Cayman) which is an indirect owner of a 73.37% stake in Mandarin Oriental.
"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 in a statement.
The closing of the transaction is anticipated by the end of March 2022, the company said, adding that in the event other owners of the hotel elect to participate in the transaction, its subsidiary would acquire the remaining 26.63% stake, based on the same valuation used for the acquisition of the indirect 73.37%.
Set up in 2003, Mandarin Oriental, New York is an iconic luxury hotel located at 80 Columbus Circle, directly adjacent to the pristine Central Park and Columbus Circle. It had revenues of $115 million in 2018, $113 million in 2019 and $15 million in 2020.