RIL buys New York luxury hotel Mandarin Oriental for $98.15 mn

RIL buys New York luxury hotel Mandarin Oriental for $98.15 mn

Reliance Industries Ltd has announced the acquisition of New York’s premium luxury hotel Mandarin Oriental for $ 98.15 million.

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.

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 $115 million in 2018, $113 million in 2019 and $15 million in 2020, according to the Reliance filing.

“This acquisition will add to the consumer and hospitality footprint of the group,” the RIL said in a filing with stock exchanges.

The Reliance Industries Group, led by Mukesh Ambani, already has investments in the EIH Ltd. (Oberoi Hotels), the Stoke Park Limited in the U.K. and is developing a state-of-the-art convention centre, hotel and managed residences in BKC Mumbai.

The closing of the transaction of the Mandarin Oriental deal is expected by the end of March 2022.

The RIIHL has also offered to buy out the other shareholders of the hotel and said it would acquire the remaining 26.63%, based on the same valuation used for the acquisition of the indirect 73.37% stake.

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