Ambani is buying a hotel in New York for $ 98.2 million

Mumbai

Mukesh Ambani, Asia's richest man, is set to buy a majority stake in Mandarin Oriental, a luxury hotel in New York City, for just $ 98.2 million.

Hotel Mandarin Oriental owns 73.4% of the Cayman Islands-based company, an investment corporation in Dubai. Ambani's Reliance Industries will acquire the hotel from the company for $ 98.2 million. The acquisition is expected to be completed by the end of March.

However, Ambani's company is keen to take full ownership of the hotel. Reliance said the acquisition would be planned on the basis of the same valuation if other hotel owners wanted to sell their shares.

In 2008, the value of the property of Mandarin Oriental Hotel was 340 million dollars. As such, Reliance is going to get the hotel at a huge discount. This is because of the global coronavirus infection. Whatever the price, ownership of the hotel, located near New York Central Park, is expected to be a major achievement for Reliance.

Mandarin Oriental, like most hotels, has suffered huge losses in the last two years. The New York hotel earned $110 million and $113 million in 2016 and 2019, respectively, and only $15 million in 2020 after the onset of the epidemic.

After selling fuel, petrochemicals, natural gas, telecommunications, textiles, retail and technology, Mukesh Ambani's Reliance fleet will now have 'Consumer and Hospitality Services'. The company has already purchased luxury properties in several locations, including India and the United Kingdom. Reliance Group of India is acquiring Mandarin Oriental in continuation of those ventures.

In recent months, the wealth of Indian billionaire Ambani has increased. According to the Bloomberg Billionaires Index, his current net worth is $ 9.29 trillion. He is the No. 1 richest person in India and the 11th richest person in the world.

Corporate correspondent