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Saturday 24 December 2011

Mahindra Holidays acquires The Retreat by Zuri Goa for Rs 112 crore

Mahindra Holidays & Resorts I Ltd (MHRIL) has acquired a 106 room hotel in Pedda, Salcette, Goa. The hotel was acquired from Bangalore-based The Zuri Group which currently operates four hotels in India - excluding the Pedda property which was earlier operated under the banner The Retreat by Zuri, Goa.

Rajiv Sawhney, managing director, Mahindra Holidays & Resorts I Ltd (MHRIL), said, “While discovering new destinations and placing them on the holidayer’s map has been a strong tradition at Mahindra Holidays, we always aim to ensure that our members can holiday where they want. This launch will significantly augment our capacity in Goa which is one of our most preferred destinations.”

While MHRIL did not disclose the deal value, industry sources confirmed the transaction was closed at a little over Rs 1 crore per key giving The Zuri Group Rs 112 crore from the sale of this asset.

Confirming the sale of the hotel, Bobby Kamani, managing director, Zuri Group Global, said, divesting the property was a planned and strategic decision by the hotel company primarily because the company was over exposed in the leisure destination with two properties. “It was quite an interesting deal that Mahindra made us for The Retreat and it works in our benefit. The money that this deal will bring in will primarily be used for the revamp of our other property - The Zuri Whitesands, Goa Resort and Casino built on a 37 acre beach front land parcel," said Kamani.

this move, Zuri top management said, is in line with the group’s intention of pursuing an aggressive growth for the immediate future. "The decision taken will help reduce debt and completely refurbish the five-star luxury Goa and Kumarakom resorts. More investments will be pumped in to further expand the hospitality basket under Zuri Group Global," said Priti Chand, vice president - corporate communications and public relations for Zuri Group Global.

Post acquisition, MHRIL has re-branded the property as Club Mahindra Emerald Palms resort taking its tally to 336 rooms in South Goa. The Club Mahindra management also said that the Goa hotel was the first of a series of launches in the next six months, whereby several new destinations will be added along with a significant increase in its room count.

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