Reliance Buys New York’s Luxury Hotel Mandarin Oriental for ₹ 735 Crore

Located at 80, Columbus Circle, Mandarin Oriental's New York property is on the corner of Central Park, New York City's largest green space.

Updated: January 9, 2022 9:07 AM IST

By India.com Business Desk | Edited by Rajashree Seal

Mandarin Oriental New York has global recognition and has won several influential awards including AAA Five Diamond Hotel, Forbes Five Star Hotel, and Forbes Five Star Spa, among others.
Mandarin Oriental New York has global recognition and has won several influential awards including AAA Five Diamond Hotel, Forbes Five Star Hotel, and Forbes Five Star Spa, among others.

New Delhi: India’s largest corporate by revenues, profits, and market value, Reliance Industries Ltd (RIL) has announced its acquisition of the entire share capital of Columbus Centre Corporation, Cayman Islands, for an “equity consideration of $98.15 million (Rs 735 crore)”. This is the latest addition to Billionaire Mukesh Ambani-owned RIL’s acquisitions worth $5.6 billion across eight verticals (Morgan Stanley aggregation a day before the Mandarin Oriental deal). Columbus Centre is 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.

Located at 80, Columbus Circle, Mandarin Oriental’s New York property is on the corner of Central Park, New York City’s largest green space. Set up in 2003, the iconic luxury hotel’s rooms overlook the Hudson River and are steps away from the Broadway Theater District, Lincoln Center, Central Park, and about 20 minutes by foot from Times Square.

“Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly owned subsidiary of Reliance Industries Limited (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 USD 98.15 million,” the firm said in a stock exchange filing. This is the second acquisition of iconic hotel by Reliance in less than a year.

In April last year, Reliance acquired Stoke Park Ltd in the UK – an iconic locale that’s been the setting for two James Bond films. The two iconic locales add to its current stake in Oberoi hotels and hotel/managed residences in Mumbai that it’s developing. Over the past five years, Reliance has announced USD 5.6 billion in acquisitions with 45 per cent in TMT, and 23.6 per cent in new energy.

Mandarin Oriental New York has global recognition and has won several influential awards including AAA Five Diamond Hotel, Forbes Five Star Hotel, and Forbes Five Star Spa, among others. It had revenues of USD 115 million in 2018, USD 113 million in 2019 and USD 15 million in 2020, according to the Reliance filing.

“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 the UK and is developing a state-of-the-art convention centre, hotel and managed residences in BKC Mumbai,” it 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 per cent, based on the same valuation used for the acquisition of the indirect 73.37 per cent stake,” it added.

RIIHL had in April last year announced acquisition of the entire issued share capital of Stoke Park Limited, a company incorporated in the United Kingdom, for 57 million pounds. The facilities include a hotel, conference facilities, sports facilities and one of the highest rated golf courses in Europe. Reliance currently has investments in EIH Ltd apart from developing convention centre, hotel and managed residences in Mumbai.

(With Agency Inputs)

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Published Date: January 9, 2022 9:03 AM IST

Updated Date: January 9, 2022 9:07 AM IST