RIL subsidiary buys New York-based luxury hotel Mandarin Oriental for $98.15 mil.

10 Jan 2022 , 09:00 AM

Columbus Centre Corporation (Cayman) is a company incorporated in the Cayman Islands and is an indirect owner of a 73.37% stake of Mandarin Oriental New York, a luxury hotel-chain in New York City.

Mandarin Oriental New York, set in 2003, is an iconic luxury hotel located at 80 Columbus Circle, directly adjacent to the pristine Central Park and Columbus Circle. It has global recognition and has won several influential awards including AAA Five Diamond Hotel, Forbes Five Star Hotel, and Forbes Five Star Spa, among others. It 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 group. The group already has investments in EIH (Oberoi Hotels), Stoke Park in UK and is developing state-of-the-art convention centre, hotel and manged residences in BKC Mumbai.

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, Reliance Industrial Investments and Holdings (RIIHL) would acquire the remaining 26.63% stake, based on the same valuation used for the acquisition of the indirect 73.37% stake.

Mayer Brown LLP acted as legal counsel for Reliance Industries (RIL) on the transaction. The acquisition is not a related party transaction and none of RILs promoter/ promoter group/ group companies have any interest in the entities involved in the transaction.

On a consolidated basis, RIL reported 46% increase in net profit to Rs 15,479 crore on 50.7% rise in net sales to Rs 1,67,611 crore in Q2 September 2021 over Q2 September 2020.

Shares of RIL rose 0.80% to close at Rs 2,435.95 on BSE on Friday, 7 January 2022. RIL is Indias largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail, and digital services.

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