Mandarin Oriental: India’s Mukesh Ambani buys New York hotel for $ 98 million

Ambani’s conglomerate, Reliance Industries, on Saturday announced the acquisition of the hotel’s parent company, a Cayman Islands-based firm controlled by Investment Corporation of Dubai. This company indirectly has an ownership interest of 73.4% in the property.

The agreement is expected to end at the end of March. Reliance said it would plan to acquire the remaining stake based on the same valuation if the hotel’s other owners choose to sell their shares as well.

The Investment Corporation of Dubai took over the building in 201[ads1]5. And in March last year, the Mandarin Oriental Hotel Group still owned a 25% stake, according to its latest annual report.
The $ 98.2 million price tag represents a significant discount: A 2007 shareholder report from Mandarin Oriental revealed that the property was valued at as much as $ 340 million.
Like most hotels, the Mandarin Oriental was hit hard by the Covid-19 pandemic. In a stock exchange announcement on Saturday, Reliance said that the New York hotel raised only $ 15 million throughout 2020, compared to $ 115 million and $ 113 million in 2018 and 2019, respectively.

Located near Central Park and overlooking Columbus Circle, this iconic hotel is a Reliance tent.

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Ambani’s vast conglomerate is better known for its energy, retail and technology businesses, but said in its application that it was looking to increase its “consumer and hospitality footprint”, which already includes a small but growing range of luxury properties in India. Great Britain and elsewhere.

Reliance currently owns shares in Oberoi Hotels, a collection of five-star resorts across India and six other countries, as well as Stoke Park, a famous English country club.

Ambani has been on a deal trip throughout the pandemic, raising tens of billions of dollars to pursue the goal of making Reliance the next major global technology giant.
His personal fortune has also risen in recent months to $ 92.9 billion, making him India’s richest man and the world’s eleventh richest person, according to the Bloomberg Billionaires Index.

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