Reliance Industries Ltd (RIL), owned by billionaire Mukesh Ambani, stated on Saturday that one of its group companies has completed a $98.15 million deal to buy a Cayman Islands corporation that owns the famed luxury hotel Mandarin Oriental New York in New York City.
The Mandarin Oriental New York, located at 80 Columbus Circle, is an iconic luxury hotel that is right near to Central Park and Columbus Circle.
According to a late-night stock exchange statement by RIL, the hotel recorded revenue of $115 million in 2018, $113 million in 2019, and $15 million in 2020.
“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,” RIL said.
Subject to normal regulatory and other clearances, the deal is expected to close by the end of March 2022.
Columbus Centre Corporation (Cayman), a company incorporated in the Cayman Islands and the indirect owner of a 73.37 percent stake in Mandarin Oriental New York, has agreed to sell its entire issued share capital to Reliance Industrial Investments and Holdings Ltd (RIIHL), a wholly owned subsidiary of RIL.
“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,” Reliance said.