Reliance Industries Limited announced on Saturday that it has reached an agreement to acquire Mandarin Oriental, an upscale luxury hotel in New York City, for equity consideration of approximately $ 98.15 million. Reliance Industrial Investments and Holdings Limited, a wholly owned subsidiary of 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 percent stake in Mandarin Oriental New York, one of New York City’s upscale luxury hotels, for an equity consideration of approximately $ 98.15 million, the company said belonging to Mukesh Ambani in a statement.
Founded in 2003, the Mandarin Oriental New York is an iconic luxury hotel located at 80 Columbus Circle, close to famous Central Park and Columbus Circle. The hotel generated revenues of $ 115 million in 2018, $ 113 million in 2019, and $ 15 million in 2020.
This acquisition will help Reliance Industries expand 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 center, hotel and managed residences at BKC Mumbai.
“The transaction is expected to close by the end of March 2022 and is subject to certain regulatory and other customary approvals and the satisfaction of certain other conditions. In the event that the other hotel owners choose to participate in the sale transaction, RIIHL will acquire the remaining 26.63 percent, based on the same valuation used to acquire the indirect interest of 73 , 37 percent, ”said RIL.
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