Billionaire Mukesh Ambani takes control of Mandarin Oriental NYC Hotel for $ 98M


Asia’s wealthiest businessman is collecting Mandarin Oriental New York City hotel – and at a discounted rate.

Mukesh Ambani – a power, technology and retail entrepreneur with a net worth of about $ 93 billion – has taken a controlling stake of $ 98 million in five-star assets, according to a government filing.

Ambani’s Mumbai-based conglomerate Reliance Industries, which owns luxury hotels in London and Mumbai, took a 73 percent stake in the luxury space, effectively worth $ 134 million.

The 248-room hotel in Columbus Circle and over Central Park was worth $ 340 million in 2007. Steve Quazo of The Post first reported that it was quietly placed in the block in September.

Sources told The Post at the time that Mandarin Oriental sales were expected to be less than $ 100 million in the current, hard-to-sell market for New York hotels.

Like other luxury hotels in the Big Apple, Mandarin Oriental also suffers from the lack of permission for international travelers to come to the US and is now shunned by the fast-moving Omicron variant. Domestic leisure travel to the city was also hit during the epidemic.

Mukesh Ambani has a fortune of about $ 93 billion.
Getty Images

According to Reliance Industries, the hotel will have revenues of just $ 15 million in 2020, compared with $ 115 million in 2018 and $ 113 million in 2019.

The hotel is owned by the Cayman Islands-based firm which is controlled by the Investment Corporation of Dubai, which retains a 26.6 percent stake in the property, with Reliance Industries leading the acquisition for the “same valuation” of its majority shareholding. , The company said in a statement.

“This business represents a lower capitalization rate on pre-Covid’s earnings, and a bet on improved profitability when the epidemic travel restrictions are behind us,” said Jonathan M. Bullock of New York University. Sean Hennessy, a professor at the Tisch Center of Hospitality, told The Post. .

Conference room at the hotel
NYU professors told The Post that the purchase confirms optimism that the economy will recover from Covid.
Corbis by Getty Images

“We have seen this first in prompting buyers to acquire hotels when 30 per cent of the hotels are available. [their] Past prices and valuations. “

Ambani’s company is best known for focusing on energy, technology and retail, but said it is looking to expand its small hospitality footprint. According to the LOVEBYLIFE Billionaire Index, the mogul is listed as the 11th richest person in the world, with a fortune of $ 92.9 billion.

Vijay Dandapani, president of the New York City Hotel Association, previously told The Post that the bet looks promising in Mandarin Oriental and the brand should be in Manhattan as the property has a long-term contract with the Asian hotel chain.

.

Related Articles

Texas Synagogue Siege – Brit gunman takes 4 hostages before police kill him after he was forced to speak with ‘Lady Al Qaeda’

The FBI has confirmed that the Texas Synagogue Capt. Is a British citizen who held four worshipers hostage. The gunman, whom authorities have named...

Seahawks Russell Wilson wants to explore offseason options

The Seahawks' season may be over, but there is growing talk about the future of quarterback Russell Wilson. Wilson is said to want to...

WWE sent Mustafa Ali home weeks ago

Mustafa Ali surprised fans when he requested a release from the WWE. This was the end of a long extension at home,...

Latest Posts

Texas Synagogue Siege – Brit gunman takes 4 hostages before police kill him after he was forced to speak with ‘Lady Al Qaeda’

The FBI has confirmed that the Texas Synagogue Capt. Is a British citizen who held four worshipers hostage. The gunman, whom authorities have named...

Seahawks Russell Wilson wants to explore offseason options

The Seahawks' season may be over, but there is growing talk about the future of quarterback Russell Wilson. Wilson is said to want to...

WWE sent Mustafa Ali home weeks ago

Mustafa Ali surprised fans when he requested a release from the WWE. This was the end of a long extension at home,...

Texas Synagogue hostage situation: British man Malik Faisal Akram gunman

Authorities on Sunday identified the 44-year-old British citizen as the hostage of four in the Texas synagogue for 10 hours before the FBI...

Farrah Abraham arrested after slapping security guards while partying with friends at club

Farah Abraham was arrested Saturday after a physical altercation with a security guard.A 30-year-old Teen Mom OG star has been taken into custody...