Reliance acquires 73.37% in New York’s Mandarin Oriental hotel

Reliance Industrial Investments and Holdings Ltd, an RIL arm, has inked a deal to buy the entire share capital of Columbus Centre Corporation, the indirect owner of Mandarin Oriental New York

Reliance Industrial Investments and Holdings Limited, a wholly-owned subsidiary of Reliance Industries Ltd (RIL), has entered into an agreement to acquire the entire share capital of Columbus Centre Corporation, Cayman Islands, for an equity consideration of $98.15 million (Rs 735 crore).

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.

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, read a filing by RIL on Saturday.

If the other owners of the hotel decide 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.

Mandarin Oriental had revenues 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 Reliance group.

The group already has investments in EIH Ltd (Oberoi Hotels), Stoke Park Ltd in the UK and is developing state-of-the-art convention centre, hotel and managed residences in BKC Mumbai, the filing added.

The closing of the transaction is anticipated to occur by the end of March and is subject to certain customary regulatory and other approvals and the satisfaction of certain other conditions.