Share this post on:

Asia’s richest businessman is scooping up the Mandarin Oriental New York City hotel — and at a discount price.

Mukesh Ambani — an energy, tech and retail magnate who has an estimated net worth of nearly $93 billion — took a controlling stake in the five-star property for $98 million, according to a government filing.

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

The 248-room hotel located at Columbus Circle and overlooking Central Park, had been valued at $340 million in 2007. It was quietly put on the block in September, as The Post’s Steve Cuozzo first reported.

In the current, distressed market for New York hotels, a Mandarin Oriental sale had been projected to fetch as little as $100 million, sources told The Post at the time.

Like other luxury hotels in the Big Apple, the Mandarin Oriental has been 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.

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

The hotel had revenues of just $15 million in 2020, compared with revenues of $115 million in 2018 and $113 million in 2019, according to Reliance Industries.

The hotel has been owned by a Cayman Islands-based firm controlled by the Investment Corporation of Dubai, which will retain a 26.6 percent stake in the property, which Reliance Industries has offered to acquire “for the same valuation” used for the majority stake investment, the company said in a statement.

“The transaction represents a low capitalization rate on pre-covid earnings and appears to be a bet on improved profitability once pandemic travel restrictions are behind us,” Sean Hennessey, a…

Source link

Share this post on:

Leave a Comment

Your email address will not be published. Required fields are marked *