RIL to acquire New York’s luxury hotel Mandarin Oriental for $98 million

Mandarin Oriental Hotel (Picture courtesy: Hotel website)

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Billionaire Mukesh Ambani-led Reliance Industries said late Saturday that it has entered a pact to acquire Mandarin Oriental, a premium luxury hotel in New York, for an equity consideration of around $98.15 million.

In a statement to bourses, the conglomerate said that RIL’s arm Reliance Industrial Investments and Holdings Limited (RIIHL), 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% stake in Mandarin Oriental New York.

This acquisition is a part of RIL’s strategy to expand its consumer and hospitality footprint. The group has investments in EIH (Oberoi Hotels) and has acquired the 300-acre Stoke Park country club in Buckinghamshire. RIL is also developing a convention centre, hotel and managed residences in the Bandra-Kurla Complex in Mumbai.

Mandarin Oriental New York is located at 80 Columbus Circle, directly adjacent to the Central Park and Columbus Circle. It had revenues of $115 million in 2018, $113 million in 2019 and $15 million in 2020.

The hotel that was set up in 2003 has global recognition and has won several influential awards, the RIL statement said.

“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%, based on the same valuation used for the acquisition of the indirect 73.37% stake,” RIL said.

Shares of RIL closed on Friday at Rs 2435.95 on BSE, up 0.8% from the previous close.

Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.