India-based Reliance Industries Limited’s (RIL) subsidiary has signed agreement to acquire a controlling stake in Mandarin Oriental hotel in New York, US.

Under the agreement, Reliance Industrial Investments and Holdings Ltd (RIIHL) will buy 73.37% stake held indirectly by Columbus Centre Corporation (Cayman) in a deal valued at $98.15m.

Located at 80 Columbus Circle, the five-star Mandarin Oriental hotel features elegant guestrooms and suites and amenities including MO Lounge, a 14,500ft2 spa, an advanced fitness centre and a 75ft lap pool.

Mandarin Oriental hotel was established in 2003. It generated revenues of $115m in 2018, $113m in 2019 and $15m in 2020.

The acquisition is in line with RIL’s strategy to expand its consumer and hospitality presence.

It follows the acquisition of Stoke Park, a luxury hotel, spa and country club in the UK in a deal valued at $79m.

RIL in a statement said: “This acquisition will add to the consumer and hospitality footprint of the group. The group already has investments in EIH Ltd (Oberoi Hotels), Stoke Park Limited in UK and is developing state-of-the-art convention centre, hotel and manged residences in BKC Mumbai.”

In addition to acquiring the majority stake, RIIHL has offered to use the same valuation to take over the remaining 26.63% stake from the other owners of the hotel.

Law firm Mayer Brown serve as legal counsel for RIL on the transaction.

Completion of the deal is subject to certain customary regulatory and other approvals. It is expected to complete by the end of March this year.