Reliance Industries Limited (RIL) is set to acquire New York's premium luxury hotel Mandarin Oriental for an equity consideration of around $98.15 million, Moneycontrol reports.

The Reliance Industrial Investments and Holdings Limited (RIIHL) has entered into a pact to take over the whole issued share capital of Columbus Centre Corporation (Cayman).

The concerned company is based in the Cayman Islands and is the indirect owner of 73.37 per cent holding in the Mandarin Oriental in New York.

"The closing of the transaction is anticipated to occur by the end of March 2022 and is subject to certain customary regulatory and other approvals and the satisfaction of certain other conditions," RIIHL's official statement on the issue read.

It further added, "In the event that the other owners of the hotel elect to participate in the sale transaction, RIIHL would acquire the remaining 26.63 per cent, based on the same valuation used for the acquisition of the indirect 73.37 per cent stake."

Mandarin Oriental New York had recorded revenues of about $115 million and $113 million in 2018 and 2019, respectively. In contrast, it took a hit in 2020, possibly due to the Covid-19 pandemic, as they collected earnings of $15 million that year.

RIL is looking to expand its footprint in the consumer and hospitality sectors as it has also made its investments in Oberoi Hotels and the Stole Park country club in Buckinghamshire.