This story first appeared in DNA Money edition on Tuesday, Oct 16, 2012.
French hospitality major Accor has divested a 60% stake in its wholly owned subsidiary Barque Hotels to Samhi Hotels.
Barque has a portfolio of 15 Formule 1 hotel projects, of which two (in Greater Noida and Ahmedabad) are operational and the rest are in various stages of development. By the end of 2013, the group expects to have almost half-a-dozen Formule 1 hotels, with new properties in Pune, Bangalore, Gurgaon and Hyderabad coming on stream.
“The deal is in line with our global strategy of ‘asset-light’ development, which allows us to focus on operating a consistently high quality portfolio of hotels that spans the spectrum from luxury to budget,” said Gaurav Bhushan, chief development and investment officer, Accor Asia-Pacific.
Accor will maintain a 40% stake in the hotels and will continue to operate them under long-term operating agreements.
In a non-exclusive arrangement with Samhi, the French company will also retain the right to own and/or develop further Formule 1 projects in India.
The deal size was not disclosed.
Ashish Jakhanwala, managing director and CEO, Samhi Hotels Pvt Ltd, said, Samhi will invest $40-50 million in Barque Hotels in the next 18 months.
“An entry-level international hotel brand was missing in our portfolio of brands,” said Jakhanwala, pointing out that the segment has huge demand, which Formule 1 can help tap.
He said the ownership structure is likely to remain in the same proportion unless a new structure is devised in future.
According to Jakhanwala, the deal was initiated in February this year.
The approach of Samhi, set up in December 2010, has been to work with multiple hotel brands and already has Courtyard by Marriott and Royal Orchid, Hyatt Place and Fairfield in its portfolio.
Earlier this year, it had acquired BSE-listed Royal Orchid Hotels’ Ahmedabad hotel operated by Royal Orchid Ahmedabad.
The world’s leading hotel operator and market leader in Europe, Accor is present in 92 countries with nearly 3,500 hotels and 4.4 lakh rooms. Besides Formule 1, its portfolio of hotel brands includes Sofitel, Pullman, MGallery, Novotel, Suite Novotel, Mercure, Adagio and ibis.
French hospitality major Accor has divested a 60% stake in its wholly owned subsidiary Barque Hotels to Samhi Hotels.
Barque has a portfolio of 15 Formule 1 hotel projects, of which two (in Greater Noida and Ahmedabad) are operational and the rest are in various stages of development. By the end of 2013, the group expects to have almost half-a-dozen Formule 1 hotels, with new properties in Pune, Bangalore, Gurgaon and Hyderabad coming on stream.
“The deal is in line with our global strategy of ‘asset-light’ development, which allows us to focus on operating a consistently high quality portfolio of hotels that spans the spectrum from luxury to budget,” said Gaurav Bhushan, chief development and investment officer, Accor Asia-Pacific.
Accor will maintain a 40% stake in the hotels and will continue to operate them under long-term operating agreements.
In a non-exclusive arrangement with Samhi, the French company will also retain the right to own and/or develop further Formule 1 projects in India.
The deal size was not disclosed.
Ashish Jakhanwala, managing director and CEO, Samhi Hotels Pvt Ltd, said, Samhi will invest $40-50 million in Barque Hotels in the next 18 months.
“An entry-level international hotel brand was missing in our portfolio of brands,” said Jakhanwala, pointing out that the segment has huge demand, which Formule 1 can help tap.
He said the ownership structure is likely to remain in the same proportion unless a new structure is devised in future.
According to Jakhanwala, the deal was initiated in February this year.
The approach of Samhi, set up in December 2010, has been to work with multiple hotel brands and already has Courtyard by Marriott and Royal Orchid, Hyatt Place and Fairfield in its portfolio.
Earlier this year, it had acquired BSE-listed Royal Orchid Hotels’ Ahmedabad hotel operated by Royal Orchid Ahmedabad.
The world’s leading hotel operator and market leader in Europe, Accor is present in 92 countries with nearly 3,500 hotels and 4.4 lakh rooms. Besides Formule 1, its portfolio of hotel brands includes Sofitel, Pullman, MGallery, Novotel, Suite Novotel, Mercure, Adagio and ibis.
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