Chalet Hotels Ltd. has signed a share purchase agreement to acquire Belaire Hotels Pvt. Ltd., owner of the Novotel Hotel in Pune, and its affiliate entity SHPL for an aggregate enterprise valuation of about Rs 290 crore.
The completion of the transaction is subject to fulfilment of conditions mentioned in the share purchase agreement, Chalet Hotels said in a filing to the BSE.
The Novotel Hotel in Pune is operated by AAPC India Hotel Management Pvt. Ltd, part of the Accor Group, under a management agreement, it added.
With this new relationship, Chalet Hotels marks the beginning of its tie-up with Accor Group, one of the largest global hospitality players with significant presence in India with key brands such as Fairmont, Sofitel, Novotel and ibis, among others.
“This move (acquisition of Belaire) is in line with our growth strategy of strengthening and expanding our portfolio to new geographies with strong demand potential," Sanjay Sethi, managing director and chief executive officer of Chalet Hotels, said in the filing.
The company believes Pune is an attractive market and has sizeable commercial office development, resulting in strong hotel demand dynamics. "We look forward to working with the very capable management team of Accor to turn around this hotel through capacity enhancement and aggressive growth in market share," Sethi said.
On Friday, Chalet Hotels shares rose 1.74 percent to Rs 345.50 apiece on the NSE while the benchmark Nifty 50 shed 0.03 percent to end the day at 12,352.35 points.
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