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Hong Kong (CNN Business) -
Asia's biggest billionaire, Mukesh Ambani, took a majority stake in New York's Mandarin Oriental for just over $ 98 million.
Ambani's conglomerate Reliance Industries announced on Saturday the acquisition of the hotel's parent company, a Cayman Islands-based firm controlled by the Investment Corporation of Dubai.
This company indirectly owns a 73.4% stake in the hotel.
The operation is expected to close at the end of March.
Reliance has said that it plans to acquire the remainder of the stake based on the same valuation if the other owners of the hotel decide to sell their shares as well.
The Dubai Investment Corporation took over the building in 2015. And as of last March, the Mandarin Oriental Hotel Group still held a 25% stake, according to its most recent annual report.
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The $ 98.2 million price tag represents a significant discount - a 2007 Mandarin Oriental shareholder report revealed the property was valued at a whopping $ 340 million
Like most hotels, the Mandarin Oriental was hit hard by the covid-19 pandemic.
In a market filing on Saturday, Reliance said the New York hotel brought in just $ 15 million in all of 2020, compared to 115 and 113 million in 2018 and 2019, respectively.
The iconic hotel, located near Central Park and overlooking Columbus Circle, is a premier acquisition for Reliance.
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Ambani's sprawling conglomerate is best known for its energy, retail and technology businesses, but said in its presentation that it was trying to expand its "consumer and hospitality footprint," which already includes a small but growing list of properties. luxury in India, the UK and elsewhere.
Reliance currently has stakes in Oberoi Hotels, a collection of five-star resorts in India and six other countries, as well as Stoke Park, a famous English country club.
Ambani has been dedicated to closing deals throughout the pandemic, racking up tens of billions of dollars to pursue his goal of making Reliance the next great global tech giant.
His personal wealth has also soared in recent months to $ 92.9 billion, making him the richest man in India and the 11th richest person in the world, according to the Bloomberg Billionaires Index.
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