Reliance buys controlling stake in NYC hotel in its hospitality push

By Nikita Chaurasia  | Date: 2022-01-10

Reliance buys controlling stake in NYC hotel in its hospitality push

Reliance Industries Ltd. is reportedly planning to acquire a controlling stake in New York's five-star Mandarin Oriental Hotel for around USD 100 million.

The company stated in a stock exchange filing that its industrial investments subsidiary, Reliance Industrial Investments and Holdings Limited (RIIHL), will secure Columbus Centre Corp. for an equity consideration of USD 98.15 million. 

Columbus already owns 73.37% of the Mandarin Oriental New York, implying that Ambani's Reliance Industries is now indirectly financially involved with the hotel.

The Indian conglomerate is procuring Oriental's Cayman Island-based parent company, Columbus Centre Corp, and the transaction is scheduled to be completed by the end of the first quarter of 2022, subject to certain regulatory norms and approvals.

People close to the situation asserted that if other stakeholders wish to take part in the negotiations, Reliance’s subsidiary plans to buy out the remaining 26.63% stake at the same valuation used for the acquisition of the majority stake.

As per the company, the five-star hotel has won numerous influential awards and gained immense global recognition. The corporation hopes that the addition will aid in expanding the company’s consumer goods and hospitality footprint around the world.

Sources claim that the subsidiary will contribute to improving and enhancing the hotel chain's hospitality and customer service segments.

It is also worth noting that Reliance has investments in several hotel chains, including Stroke Park Limited in the United Kingdom, EIH Ltd. (Oberoi Hotels), and others. Furthermore, it aims to establish a convention center, hotel, and residence complex in Mumbai over the next few years.

Just last week, to broaden its retail portfolio in the world's largest consumer market, Reliance Industries Ltd. purchased a 25.8% stake in the Bangalore-based delivery company, Dunzo, for nearly USD 200 million.

Source credit:

https://www.business-standard.com/article/companies/reliance-to-buy-control-of-new-york-s-mandarin-oriental-hotel-for-98-mn-122010900053_1.html

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Russia denies plans of blocking YouTube & cutting off from the internet

Russia denies plans of blocking YouTube & cutting off from the internet

By Nikita Chaurasia

The Digital Development Minister of Russia has reportedly stated that the country is not planning to block Google’s video streaming platform YouTube as such a move would affect its users and will therefore be avoided.  It is worth notin...

Indian food delivery giant Swiggy to buy Dineout from Times Internet

Indian food delivery giant Swiggy to buy Dineout from Times Internet

By Nikita Chaurasia

Swiggy, an Indian food delivery giant, has recently announced an agreement with Times Internet to buy Dineout, a dining and restaurant technology platform. Swiggy will use the acquisition to enter the dining out (non-delivery) market, where it will c...

Grocery delivery platform Instacart files for U.S. stock market debut

Grocery delivery platform Instacart files for U.S. stock market debut

By Nikita Chaurasia

Instacart, a grocery delivery service, has announced that it has submitted a provisional registration statement with the Securities and Exchange Commission (SEC), clearing the way for the company to list its shares on the U.S. stock exchange. The ...

Tyson Foods improves annual sales outlook as meat prices surge in U.S.

Tyson Foods improves annual sales outlook as meat prices surge in U.S.

By Nikita Chaurasia

American food major Tyson Foods Inc. has reportedly improved its full-year sales outlook after witnessing better-than-expected earnings and revenue in the last quarter. The company raised its full-year sales to around USD 54 billion, above the averag...

EU likely to enforce new rules to regulate tech giants in spring 2023

EU likely to enforce new rules to regulate tech giants in spring 2023

By Nikita Chaurasia

The Executive Vice President of the European Commission Margrethe Vestager reportedly claimed that the union is likely to start enforcing the Digital Markets Act (DMA) in the spring of 2023. The antitrust legislation, which aims to limit the power of...