Unique Mercantile India, an exclusive development partner for global hospitality major Wyndham Hotel Group in India, has acquired a majority stake in a soon-to-be-operational hotel owned by Platinum World Hospitality in West Bengal.
Industry sources told DNA Money that the Ahmedabad-based company has concluded the deal and will be launching the 90-room hotel at Rajarhat, Kolkata, under the upscale mid-market brand Howard Johnson (popularly known as HoJo) soon.
"Unique Mercantile India has made a strategic investment to acquire majority shares of a 90-room hotel project, which is at a very advanced stage of development. The share purchase agreement has been signed with Platinum World Hospitality that owns the hotel asset strategically located in Rajarhat New Town near Netaji Subhas Chandra Bose International Airport, Kolkata," said sources familiar with the development, adding that the hotel will commence operations in next 30 days.
According to sources, the market value of the hotel is in the Rs 90-crore range. Unique Mercantile, it is understood, has picked up stake in excess of 80%, thus paying upwards of Rs 72 crore for acquiring the majority stake.
Rahul Rai, executive director, Unique Mercantile India Pvt Ltd, did not respond to queries emailed seeking details pertaining to this deal. Raipur-based Platinum World Hospitality Pvt Ltd could not be reached for a comment.
DNA Money has also learned that Mumbai-based hospitality-focused research and advisory firm Noesis Capital Advisors was instrumental in stitching this deal. When contacted, Nandivardhan Jain, chief executive officer, Noesis Capital Advisors, confirmed the development. "The deal has been signed and sealed," said Jain without sharing the financial details of the transaction.
On characteristics of the Kolkata hospitality market in connection with this deal, Jain said that there is a limited supply of quality rooms as compared to existing demand.
"Key reasons for limited supply are high land and finance cost and lead time required for approvals. The additional supply in close vicinity to Kolkata airport will benefit business and leisure travellers. This project is in one of the most established micro markets and will be positioned as a transit hotel," said Jain, adding that its immediate competition will be with operational hotels like Holiday Inn and Swissotel.
To be owned and operated under Unique Global Hotels, a hospitality venture of Unique Mercantile India Pvt Ltd, HoJo Kolkata will be its third operational property in the country – it already has one operational property at Udaipur under the Ramada brand and another hotel operational at Hebbal, Bengaluru, under the Howard Johnson brand.
At the time of launching the Bengaluru hotel in October 2014, the promoters had announced opening 35 Howard Johnson hotels over the next 15 years with an overall investment of Rs 1,800 crore. The hotels, according to Unique Global Hotels website, will be set up using a combination of management contracts, lease rental/minimum guarantee, equity participation in brownfield projects and joint ventures through special purpose vehicles on greenfield projects.
The Indian hospitality market has been witnessing some interesting merger and acquisition activity lately. Earlier this month, hospitality investment firm Samhi Hotels was reported to be picking up the India portfolio of Premier Inn hotels owned and operated by UK's hospitality major Whitbread Plc. In December 2016, France-based Louvre Hotels Group (owned by one of China's leading travel and tourism conglomerates Jin Jiang International) acquired a portfolio of 73 hotels from homegrown hospitality chain Sarovar Hotels for a value of between Rs 330 crore to Rs 350 crore.
