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Reliance buys New York's premium luxury hotel Mandarin Oriental for USD 98.15 mn

Mandarin Oriental New York, the premium luxury hotel a subsidiary of Reliance Industries is acquiring, is known for its much-in-demand ballroom, five-star spa and eating and drinking venues, including MO Lounge. Liam Neeson and Lucy Liu are among regular guests. Set up in 2003, 248-rooms and-suites hotel towering over Central Park is an iconic luxury hotel located at 80 Columbus Circle, directly adjacent to the pristine Central Park and Columbus Circle. Mandarin Oriental New York occupies floors 35-54 and is known for its much-in-demand ballroom, five-star spa and eating and drinking venues, including MO Lounge. Liam Neeson and Lucy Liu are among regular guests. "Reliance Industrial Investments and Holdings Limited (RIIHL), a whollyowned subsidiary of Reliance Industries Limited ("RIL"), has today, entered into an agreement to acquire the entire issued share capital of Columbus Centre Corporation (Cayman), a company incorporated in the Cayman Islands and the indirect owner of a 73.37 per cent stake in Mandarin Oriental New York, one of the premium luxury hotels in New York City for an equity consideration of approximately USD 98.15 million," the firm said in a stock exchange filing late on Saturday. This is the second acquisition of an iconic hotel by Reliance in less than a year. In April last year, Reliance acquired Stoke Park Ltd in the UK - an iconic locale that's been the setting for two James Bond films. The two iconic locales add to its current stake in Oberoi hotels and hotel/managed residences in Mumbai that it's developing. The latest marquee acquisition for the oil-to-telecom and retail conglomerate marks its pivot toward consumer offerings. Flush with INR 2.6 lakh crore in cash, Ambani is helming a transformation as he seeks to build the digital and retail business into equal-sized pillars for Reliance, paring dependence on profits from its traditional oil refining business. Over the past five years, Reliance has announced USD 5.7 billion in acquisitions with 45 per cent in TMT and 23.6 per cent in new energy. Mandarin Oriental New York has global recognition and has won several influential awards, including AAA Five Diamond Hotel, Forbes Five Star Hotel, and Forbes Five Star Spa, among others. It had revenues of USD 115 million in 2018, USD 113 million in 2019 and USD 15 million in 2020, according to the Reliance filing. "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 the UK and is developing a state-of-the-art convention centre, hotel and managed residences in BKC Mumbai," it said. 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. "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," it added. RIIHL had in April last year announced the acquisition of the entire issued share capital of Stoke Park, which owns and manages a 49 luxury bedroom and suites hotel, 27-hotel championship golf course, 13 tennis courts and 14 acres of private gardens in Buckinghamshire, for 57 million pounds. Since James Bond played a game with Auric Goldfinger there in the 1964 blockbuster, the estate with the Georgian-era mansion set in the midst of 300 acres of parkland has been a backdrop in productions like 'Bridget Jones's Diary' and Netflix's British Royal Family drama 'The Crown'. Reliance currently has investments in EIH Ltd apart from developing convention centre, hotel and managed residences in Mumbai. Although the Mandarin Oriental reopened on April 1 last year, it's been staggered like other leading hotels by the lack of high-spending visitors and business travellers from abroad.

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Covid surge: Delhi imposes fresh curbs, shuts restaurants and bars

Delhi Lieutenant Governor Anil Baijal on Monday announced to close the restaurants and bars and to allow only 'take away' facility in Delhi as coronavirus cases continued to surge in the national capital. "In view of the increase in positive cases it was decided to close the restaurants and bars and to allow 'take away' facility only. It was also decided to allow operation of only one weekly market per day per zone," he said. "Officers were advised to strictly ensure wearing of masks and adherence to social distancing by citizens in market places and public areas to break the chain of transmission," Anil Baijal further added. Currently, the dine-in facility in restaurants was allowed to operate at 50% of their seating capacity. The bars were also permitted to open with 50% seating capacity. The meeting also discussed scaling down full seating capacity in Metro trains and city buses from current to 50%. Earlier during the day, Anil Baijal chaired a Delhi Disaster Management Authority (DDMA) meeting on the Covid situation in the national capital. Chief Minister Arvind Kejriwal, his deputy Manish Sisodia, Health Minister Satyendar Jain, Revenue Minister Kailash Gehlot, Chief Secretary Vijay Dev and other health department officials were present in the meeting. DDMA has ruled out a possibility of lockdown but hinted at stricter restrictions. Delhi LG said the health department was advised to make adequate arrangements for additional manpower in hospitals and to scale up the vaccination efforts including to those in population between 15-18 years.

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Passengers opt for flexible air tickets amid Omicron scare: travel portals

NEW DELHI: The Omicron scare has halted revival of the travel industry for the period and passengers have started deferring their trips, travel portals said. They also mentioned that the travel demand has seen a slight drop and travellers are emphasising on hygiene and safety before selecting a destination. “The current customer trends showcase a strong emphasis on safety and hygiene, and customers are now starting to choose places that uphold high safety standards and which are following Covid-safe protocols. In 2021, we experienced a 400% jump in advance bookings for flight tickets for the year-end holidays; however, the dawn of the Omicron variant halted the travel revival that we expected for this period. Despite this new surge, the travel sentiment remains strong,” said Rihant Pittie, co-founder, EaseMyTrip. “Customers are yearning to travel once the restrictions are lifted. Even with new variants, restrictions and limitations, the travel industry is expected to only grow further in the coming year as industry stakeholders and travellers are gradually adapting to the evolved travel norms,” Pittie added. According to ratings agency ICRA, the rising infections due to Omicron variant could have some impact on the passenger traffic due to the passengers being apprehensive for air travel and also a few state governments imposing restrictions. “However, there has been limited impact due to the Omicron in December 2021. The average daily passenger for the week beginning December 27, 2021 was at 3.4 lakh when compared to 3.7 lakh and 3.6 lakh during the week beginning Dec 20, 2021 and Dec 13, 2021,” said Rajeshwar Burla, vice president and group head, corporate ratings, ICRA. While there is some softening in demand due to rising Omicron cases in the country, Cleartrip said that the travellers are looking for flexible travel options that have them covered in case there is a sudden change in regulations due to the new Covid-19 variant. “As a result, we are seeing a higher interest in our products - EzCancel that offers a 100% refund on cancellations and Flexifly which enables consumers to change plans. Customers buying Flexifly VAS have doubled since November while EZCancel is also seeing a spike in the adoption,” said Prahlad Krishnamurthi, chief brand officer, Cleartrip. Cleartrip has seen an increase in modification and cancellation of existing bookings over the last couple of weeks as travellers are adjusting their plan due to revised advisories. Krishnamurthi said, “In 2022, the domestic flight trends are looking very strong compared to 2021. Metro destinations are on track to exceed 2021 numbers.” While Yatra.com said that it is too early to comment regarding summer travel, its spokesperson also said that travellers are more mindful of the destinations and properties they choose. “They are opting for travel and accommodation options following stringent procedures of safety and sanitisation measures at each touchpoint,” Yatra.com spokesperson reiterated.

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UAE firm signs MoU to invest $100 million in J&K to strengthen tourism & hospitality business

In its ongoing efforts to strengthen the hospitality and tourism industry in Jammu and Kashmir, the government has signed an MoU with the UAE's pioneering financial services company, Century Financial that will invest $100 million in the Union Territory. An MoU was signed in a special event presided by the Lieutenant Governor Manoj Sinha. The investment will cover three hotels and one commercialcum-residential complex in Jammu & Kashmir. The owner of Century Financial Bal Krishen is originally a native of the Doda district of Jammu and has been a forerunner in supporting his home region. Speaking on the occasion, Lieutenant Governor Sinha said that Prime Minister Narendra Modi is committed to the development of the Union Territory. "We are happy to see the interest shown by UAE's big business houses and leaders in supporting this vision of our honorable Prime Minister. Global business & industry are waking up to the vistas of opportunity in Jammu and Kashmir. "Despite challenges of global pandemic, neither the pace of economic and policy reforms nor the implementation of key infrastructure projects has slowed in any way in UT and we as responsive administration will continue to respond to business's concerns," he added. Ranjan Thakur, Principal Secretary, Industries and Commerce, stated: "Jammu and Kashmir is one of the safest places in India to do business offering the most attractive incentive schemes for investments in the union territory compared to other states in the country." "I have always believed that Jammu andA Kashmir has tremendous investment potential and there cannot be a better time than now. Making a significant contribution to my home region has always been my dream and today as I see this dream getting realized, it's immensely gratifying" said Century Financial's owner, Bal Krishen.

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Private air charter operators gain from pandemic as commercial airlines suffer

Private air charter services in India claimed robust growth in 2021 even as the commercial aviation industry struggled due to the Covid-19 pandemic as more customers opted for safety and efficiency. Bookings during the pandemic climbed about 30 percent and enquiries almost tripled in 2021 from levels in 2019, Kanika Tekriwal, founder of JetSetGo Aviation Services, told Moneycontrol today. Although private jet journeys are more expensive than what commercial flights offer, the pandemic has opened up a market for working professionals who want a safe, quick and reliable way to travel without getting into crowded airports and aircraft where the risk of infection could be higher. “A lot of new startup founders, who would earlier never use chartered planes, have started to use our services. Friends pool in money and lease a plane,” Tekriwal said. JetSetGo operates 12 private aircraft and four helicopters in India. Data on the number of charter flights in a month or passengers carried is not publicly available. An estimated 43 percent of India’s ultra-wealthy individuals were more likely to consider private aviation as a way to travel in future, according to a survey by international property consultant Knight Frank last year. It found that 15 percent of the ultra-wealthy individuals were already using private jets. Blade India, which operates a fleet of 29 helicopters, is seeing a 65 percent re-booking rate by customers, founder Karanpal Singh said in November. Due to the pandemic, the company is not only looking at business travellers but also at the leisure segment, especially foreign visitors and tourists. What’s driving growth While passenger safety was the biggest reason for the growth in private air charter operations in India during the pandemic, other factors including time, efficiency, value for money, revenge tourism and falling rates of private jet rentals also contributed. Tekriwal told Moneycontrol that to reduce the cost of leasing out seats in private jets, her company started locating aircraft closest to the customers, selling empty legs of flights at lower cost, and increasing hourly utilisation to ultimately reduce costs. Singh said Blade India allows customers to buy only one seat so that they don’t have to pay for the full helicopter. “We use our technology to crowdsource people to use our service and have used data to identify routes where there is demand for our service,” Singh said. Indians planning to travel abroad have also been a big driving factor for the growth of private air charter operators. “Over the past year, many have often booked a large jet to ferry their families and friends for a vacation in Asia or Europe,” Ralph Hollister, a travel and tourism analyst at London-based GlobalData, said in December. “And from what we can see, this trend will not ebb even when Covid fears eventually ebb. Once you are used to flying in privacy and luxury, it is difficult to go back.” Christian Clerc, president, global operations for Four Seasons Hotels and Resorts, said that Covid restrictions across the world coupled with the people’s need and desire to travel had provided a boost to private jet journeys for leisure travel. Customer experiences The narrowing gap between commercial airline fares and private jet fares and the convenience offered by private aviation have drawn many to opt for services of companies such as JetSetGo. Bryan Mclyod, a musician based in Canada, first took a private flight from New Delhi to Mumbai in March 2021, right before the outbreak of the second wave of the pandemic in India. Mcloyd told Moneycontrol today that he considered flying privately due to the comparable prices of flights that were on offer and the safety aspects of private flights. “I managed to book a seat on a private flight carrying eight others for around Rs 30,000 compared to Rs 17,000 on the next commercial flight from Delhi,” Mclyod said. Since March 2021, Mclyod has taken five more private jet flights while travelling within India. He added that as part of the experience, he avoided the congestion at both Delhi and Mumbai airports. Pankaj Gupta, a businessman based in Hisar, said he used private jet services to take his family to Patna in November 2020. He has since used chartered air services thrice when travelling with his family. He said the first round trip cost him about Rs 60,000 per person and reduced the travel time to three hours against the 12-13 hours it would have taken to travel to Delhi and catch a commercial flight to Patna. Hisar is about 170 km away from the national capital. “A private charter flight was the easiest way to travel with my family when compared to travelling by road to Delhi and then getting a flight,” Gupta said. Gaurang Jain, an IT professional based in Pune, took his first chartered flight from Pune to New Delhi in October 2020 to avoid travelling commercial and exposing himself to the virus in public spaces. Since then, he has used chartered services six times when travelling alone and with his family. “I made the decision to travel using a private jet to visit my elderly parents to avoid catching the Covid-19 virus accidentally,” Jain said. Akshay and Piyusha Agarwal, who got married in January 2021, used private jets to fly in with their relatives and close friends to Mauritius from Delhi, Mumbai and Pune for their wedding. The couple has since then used private charter service twice.

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Covid-19: IndiGo to reduce daily flights by 20%

NEW DELHI : InterGlobe Aviation Limited-operated IndiGo, the country's largest domestic airline, on Sunday said that it will reduce its capacity by 20% due to the ongoing wave of the covid-19 pandemic. The airline also said that it is waiving off change fees for all new and existing bookings made for flights up to 31 March 2022 as a large number of passengers are changing their travel plans due to rising number of infections. IndiGo, which has a fleet of over 275 aircraft, operated about 1,500 daily flights in December. The airline had 54.3% domestic market share in November. "Where possible, cancellations of flights will be done at least 72 hours in advance and customers will be moved to the next available flight and will also be able to change their travel through the use of Plan B on our website," the airline said in a statement. India reported a single-day rise of 159,632 new coronavirus cases on 9 January, raising the total tally to 35,368,372, which includes 3,071 cases of Omicron variant reported across 27 states and union territories so far, according to data from the Union Health Ministry. Meanwhile, daily domestic air passenger traffic has been falling steadily in the last few days. On 8 January, The total number of departing domestic passengers stood at 241,108, while the total number of domestic flight arrivals stood at 2,365, according to data from the Ministry of Civil Aviation (MoCA). Daily domestic air passenger traffic had earlier on 4 January fell below the 300,000-level for the first time since November last year due to concerns regarding a third covid wave. The total number of departing domestic passengers had then stood at 285,965, while the total number of domestic flight departures then stood at 2,660.

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