Mukesh Ambani Invests Into Hospitality Little More With Major Stake In Mandarin Oriental
As the richest man in Asia, Mukesh Ambani now holds a majority stake in the Mandarin Oriental New York City Hotel, Reliance Industries Limited as said in an official statement. With a 73percent stake, he literally owns the luxury property that also owns hotels in London and Mumbai.
A distressed discounted sale was first put quietly up in September, according to an exclusive posted by The Post’s Steve Cuozzo. As a prime property in New York, the 248-room hotel is located at Columbus Circle overlooking the Central Park. It was valued at $340 million in 2007. Owing to the Covid-19 hiccups, the travel industry has been severely hit and compromised.
So, like other luxury hotels in the Big Apple, the Mandarin Oriental has not been spared either; suffering as international travelers have not been allowed to come to the US and are now staying away because of the fast-moving Omicron variant. Domestic leisure travel to the city has also taken a hit during the pandemic.
The hotel did not make handsome revenues in 2020, unlike in 2018. The revenue in 2018 was at $115 million and then came down to $113 million in 2019. The Covid-19 pandemic has severely affected the revenue generation of the hotel, at large. The Mukesh Ambani wing is now being seen expanding its footprint gradually into the hospitality space. His business interests have primarily been in energy, tech and retail only.
But indications are that he is gradually moving towards investments in leisure and hospitality too. The mogul is listed as the world’s 11th richest person, according to Bloomberg Billionaire’s Index, which lists his wealth at $92.9 billion. With taking on a majority stake, Ambani will also takeover its debts amounting to in excess of $115 million, taking the entire deal value to be close to $270 million.