Mukesh Ambani, Asia’s richest man, has bought a controlling stake in the Mandarin Oriental hotel in New York City for $98.15 million.
On Saturday, the Indian conglomerate, Reliance Industries, announced the acquisition of the hotel’s parent company, a firm located in the Cayman Islands controlled by the Investment Corporation of Dubai. Reliance industries will indirectly hold a 73.4% stake in the property. The Indian conglomerate will also take over its debt of over $115 million, taking the entire value of the deal close to $270 million.
The 248-room and suites hotel at Columbus Circle is one of New York’s uber-luxury hotel properties’ towering over Central Park in mid-town Manhattan. The Mandarin Oriental, which opened in 2003 and is located near Central Park, caters to high-end luxury travelers, with a few suites priced at more than $14,000 a night.
The acquisition underscores how hard the pandemic-related curbs on business travel have hit the hospitality industry. The hotel was valued at $340 million in 2006.
This is not the first time the Indian conglomerate has invested in luxury hospitality. Last since, Mukesh Ambani had bought the 300-acre Stoke Park Golf club, which featured in two James Bond films, for $57 million and has invested in the East Indian Hotel group too, the parent company of the Oberoi Hotels.
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