Affiliates of Indian conglomerate Reliance Industries has closed on a majority interest in the 20-year-old Mandarin Oriental, New York, for a reported $98 million.
According to Reuters, Reliance Industry is acquiring Columbus Centre Corp (Cayman) of the Cayman Islands, an indirect owner of a 73.37 percent stake in the hotel.
The seller is a corporation called IW Columbus Center, majority controlled by an arm of the Investment Corporation of Dubai. Mandarin Oriental Hotel Group, which owns some of the Mandarin Oriental hotels, has a 25 percent stake in the property and also manages the asset.
The 244-room Mandarin Oriental, New York, opened in 2003 and takes up floors 35 through 54 of the Deutsche Bank Center at Columbus Circle. It includes the MO Lounge, more than 9,000 square feet of meeting space, a spa and a fitness center with an indoor 75-foot lap pool.
The JLL Hotels & Hospitality team representing the sellers was led by Global CEO Gilda Perez-Alvarad; Jeffrey Davis, senior managing director and head of U.S. investment sales; and EVP Stephany Chen.
“We are seeing a rise in luxury hotel transaction volume as investors gravitate towards must-have, irreplaceable trophy assets, with New York leading the way in terms of cross-border investments into the U.S.,” Perez-Alvarado said in a statement. “Globally, luxury hotel transaction volume surpassed $10 billion in both 2021 and 2022 for the first time since 2015, underpinned by record-high pricing and attractive yields.”
“New York led all urban markets in Q1 2023 luxury transaction volume underpinned by strong fundamental performance,” Davis added. “Additionally, New York luxury [revenue per available room] reached its highest Q1 level in the market’s history as the market continues to exceed prior ADR thresholds.”
But community website W42ST noted several major Manhattan hotel transactions with a higher price point. The former Midtown Doubletree Hotel on Lexington Ave. and East 51st St. was purchased by real estate holding company Hawkins Way Capital for $146 million, a $186 million discount from its $332 million sale price in 2010, and the Hudson Hotel changed hands for an estimated $175 million in April 2021.