Reliance buys New York’s luxury hotel for $98.15 Million

India’s largest corporate entity by revenues, profits and market values; Reliance Industries Limited (RIL) has announced the acquisition of Mandarin Oriental Hotels, a flagship New York City property in Columbus Circle, for an “equity consideration of approximately $98.15 million”. The value of this hotel in Indian rupee is approximately 729 crore rupees. This is the latest addition to Reliance Industries’ acquisitions worth $5.6 billion across eight verticals. 

The Mandarin Oriental New York is an iconic luxury hotel which is located at 80 Columbus Circle. The hotel was set up in 2003. Mandarin Oriental operates 35 hotels as well as seven residences in 24 countries, including 6 hotels in the United States. 

The firm in a stock exchange filing said that, "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 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%, based on the same valuation used for the acquisition of the indirect 73.37% stake. Mayer Brown LLP acted as legal counsel for Reliance on the transaction,” RIL BSE filing says.