Reliance Industries, the conglomerate run by India’s richest man, is now wetting its beak in the glamorous New York hotel and real estate market. A few hours ago, it announced the acquisition of a sizeable interest in the Mandarin Oriental New York holding company. Reliance Industries already holds 18.83% of India’s Oberoi Hotels and Resorts (September 2021).

Reliance Checks into New York with Mandarin Oriental buy

Mandarin Oriental New York, which opened its doors in 2003,  is a stunning fusion of modern design with stylish oriental flair and features 244 guestrooms and suites, all with breathtaking city views. Luxurious amenities include MO Lounge, offering an all-day menu of elevated comfort food and well-crafted drinks, overlooking Central Park and the Manhattan skyline; a Five-Star Mandarin Oriental Spa; a state-of-the-art fitness centre; and a 75-foot lap pool.

Located in Columbus Circle’s Deutsche Bank Center, with The Shops at Columbus Circle’s collection of luxury retail stores and restaurants, Mandarin Oriental, New York is in an idyllic location steps away from world-class dining, shopping and entertainment, including the Broadway Theater District, Central Park, Lincoln Center, and Jazz at Lincoln Center.

In a late-night disclosure, Reliance Industries announced that it is paying USD 98.15 million to acquire a 73.37% stake in the company from the current owner, the Investment Corporation of Dubai. Another 25% share of the hotel is owned by Mandarin Oriental International Limited, which manages the hotel on a long-term contract.

I surely hope that RIL updates the video of the hotel once the transaction is completed, which is hardly experiential for a hotel with a $36K a night suite.

Of course, the murmurs started on how this could eventually become an Oberoi-managed property with the buy. However, that does not look to be immediately the case. The hotel sells for being labelled an MO, which is a very exclusive tag to earn, and I’d presume that the new owners would like to keep it that way unless there were issues with the management.

Bottomline

Reliance Industries of India has acquired a controlling stake in the marquee Mandarin Oriental, New York hotel. That makes it one of the few Indian conglomerates to access prime real estate in New York (apart from The Pierre, which is less than a mile away and owned/operated by India’s Taj Group).

What do you think of the newfound interest in hospitality for Reliance?

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