Reliance to buy New York’s luxury hotel
Mukesh Ambani, chairman and managing director of Reliance Industries (Photo: MANPREET ROMANA/AFP via Getty Images).
RELIANCE Industries has entered into an agreement to acquire Columbus Centre Corporation which is the indirect owner of luxury hotel Mandarin Oriental New York.
The Indian conglomerate said it will acquire the entire stake in Columbus Centre Corporation for an equity value of approximately $98.15 million (£72.42m).
Reliance is making the acquisition through its wholly-owned subsidiary Reliance Industrial Investments and Holdings Limited (RIIHL). The deal is expected to be completed by the end of March this year.
Columbus Centre Corporation holds a 73.37 per cent stake in Mandarin Oriental and Reliance said it is ready to buy the remaining stake in the five-star hotel at the same valuation used for taking over the Cayman Islands-based entity.
“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,” the Mukesh Ambani-led company said in a statement on Saturday (8).
Reliance already has investments in the hospitality sector including Oberoi Hotels and the UK’s Stoke Park Limited. The company is also developing a convention centre, hotel and managed residences in Mumbai.
“This acquisition will add to the consumer and hospitality footprint of the group,” Reliance said of the Columbus Centre Corporation deal.
Located adjacent to Columbus Circle in New York, Mandarin Oriental generated revenues of $15 million in 2020, down from the pre-Covid $113 million a year earlier.
Reliance, the most valued company of India with a market capitalisation of £160 billion, has been making acquisitions in diverse sectors.
Its renewable energy arm had recently acquired the British battery maker Faradion for £100 million.