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.

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