Ambani Reliance Signs $ 98 Million Contract with Mandarin Oriental Hotel in New York

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Reliance Industries of Mukesh Ambani will pay $ 98 million to take control of the Mandarin Oriental Hotel in New York from the Sovereign Wealth Fund in Dubai.

Opened in 2003 and located near Central Park, this hotel caters to high-end travelers. $ 14,000 Night — and Majority ownership By Dubai Investment Corporation since 2015.

This is not the first time that energy for the Indian telecommunications conglomerate has invested in luxury hospitality.Last spring, the reliance 300 acres of British country club Invested in The Oberoi Hotel for £ 57m including the hotel.

The deal highlights how severely the hospitality industry has been hit by the pandemic-related restraints on business trips. The 244-room hotel, right next to the roundabout in Columbus Circle, was worth $ 340 million in 2006.

But analysts say these trophy assets are a small change for the vast conglomerate dominated by Ambani, the wealthiest man in Asia.

“when [RIL’s] The balance sheet is close to $ 170- $ 180 billion. [hotel investments are] Is not a meaningful percentage of [its] Total balance sheet. Hersha Val Dunn Doll, an analyst at IIFL, a securities firm that covers Reliance Industries, said:

“Given the amount of investment, I think these should be considered portfolio investments rather than strategic,” Dole added.

For Dubai’s sovereign wealth fund, the sale announced late Saturday concludes the chapter on poorly performing hospitality investment swarms.

Istithmar Hotel, a Dubai World owned by the Dubai government, acquired a 73% stake in Mandarin Oriental New York in 2006 when the Hong Kong-based Mandarin Oriental Hotel Group decided to sell half of its stake.

This was one of New York’s groundbreaking hotel purchases by the Freewheeling Group.These are included W Hotels Union SquareIstithmar bought for $ 285 million and was forced to sell for $ 2 million in 2009, when Dubai’s debt crisis struck three years later.

The Investment Corporation of Dubai purchased shares in Mandarin Oriental, New York in 2015 in the aftermath of a major restructuring of the Dubai world.

To purchase Mandarin Oriental, New York, a subsidiary of Reliance will purchase Columbus Center Corporation, which is built into the Cayman Islands. Reliance said it is an indirect owner of a 73.37 percent stake in the hotel. The transaction is expected to close in March.

Reliance, India’s largest publicly traded company, has also offered to buy the remaining owners with the same reputation. Mandarin Oriental Hotel Group holds a 25% stake and continues to manage the hotel. The group did not immediately respond to the request for comment.

According to the Reliance Stock Exchange filing, the pandemic has devastated Mandarin Oriental’s earnings. In 2020, it decreased from $ 113 million in the previous year to only $ 15 million.

Additional report by Primrose Riordan in Hong Kong and Simeon Kerr in Dubai

Ambani Reliance Signs $ 98 Million Contract with Mandarin Oriental Hotel in New York

Source link Ambani Reliance Signs $ 98 Million Contract with Mandarin Oriental Hotel in New York

The post Ambani Reliance Signs $ 98 Million Contract with Mandarin Oriental Hotel in New York appeared first on Eminetra.

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