Reliance of India Buys NY Luxury Mandarin Oriental Hotel for $98.15m for 73.37%
Main Photo: The Mandarin Oriental NY
Date: February 2022
Name: Mandarin Oriental, New York
Location: Columbus Circle, Central Park, New York, NY, USA
Number of Keys: 248 rooms incl 46 suites, plus Residences, serviced by the hotel
Seller: Cayman Islands-based Columbus Centre Corp (Cayman)…The hotel was acquired for $340m in 2007, by Dubai’s Istithmar, owner of several hotels in NYC and elsewhere, from an Apollo RE Advisors JV
Buyer: Mukesh Ambani, whose Relaince Industries is one of India’s Top 10 industrial companies. He recently acquired the Stoke Park Hotel, just outside of London
Indian conglomerate Reliance Industries Ltd is paying nearly $100 million for a controlling stake in Mandarin Oriental New York, a five-star hotel in midtown Manhattan, through the purchase of its Cayman Islands-based parent.
Reliance said in a stock exchange filing on Saturday its industrial investments subsidiary will acquire Cayman Islands-based Columbus Centre Corp (Cayman) for an equity value of approximately $98.15 million.
The company said the acquisition of Columbus Centre Corp (Cayman), an indirect owner of a 73.37% stake in Mandarin Oriental New York, by Reliance Industrial Investments and Holdings Ltd would add to its consumer and hospitality activities.
The closing of the transaction is anticipated by the end of March 2022, the company said.
It added that in the event other owners of the hotel elect to participate in the transaction, its subsidiary would acquire the remaining 26.63% stake, based on the same valuation used for the acquisition of the indirect 73.37% stake.
The hotel is a stunning fusion of modern design with stylish oriental flair, which features elegant guestrooms and suites—all with breathtaking views of Manhattan. Amenities include the MO Lounge, offering an all-day menu, with views of Central Park and the Manhattan skyline;
a 14,500 square-foot Five-Star Mandarin Oriental Spa; and a fitness center with a 75-foot lap pool. Located in Columbus Circle’s Deutsche Bank Center, Mandarin Oriental, New York is a great location just steps away from world-class dining, shopping and entertainment, including the Broadway Theater District, Lincoln Center, Central Park, Jazz at Lincoln Center, and The Shops at Columbus Circle’s collection of luxury retail stores and restaurants. The hotel opened in 2003.
Price: US$98.15m for 73.37% equivalent to $133.8m for the whole
Price per Key: $539,516
THPT Comment: A remarkably good price paid, especially considering what the Dubai government paid in 2007. Mr Ambani clearly wishes to build a serious trophy asset hotel business….which one next?
First Seen: Deccan Herald of India
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