SAMHI Hotels is pleased to announce the completion of execution of the Share Purchase Agreement (SPA) for the acquisition of Innmar Tourism and Hotels (ITHPL).
The acquisition includes an operating hotel featuring 142 rooms in Whitefield, Bengaluru, one of India’s key commercial markets. There is a further expansion opportunity to add a second hotel with 200-220 rooms and take the total inventory of the complex to 340-360 rooms in the Upper Upscale & Upscale segment.
Through this acquisition, SAMHI strengthens its market share in Bengaluru, which is India’s largest & fastest-growing office market. The company already owns and operates 6 hotels with 9181 rooms in Bengaluru across segments. The completion of this acquisition will add 142 rooms on an immediate basis, with another 200 – 220 rooms being added over a period. The two hotels will be managed under Upper Upscale & Upscale brands being finalized with a large international operator.
Basis the strong performance of our hotels in the Upper Upscale & Upscale segment, the 340 – 360 rooms complex in Whitefield, Bengaluru will significantly augment the same-store growth of our existing portfolio upon completion of the renovation and proposed expansion. This will also be the second ‘twin hotel complex’ to be owned by SAMHI, the first being the 336 rooms Courtyard by Marriott & Fairfield by Marriott in Outer Ring Road (ORR) Bengaluru.
The purchase consideration for this acquisition stands at ~Rs 2,050 million (enterprise value), adjusted for net current assets, including cash and other working capital. Following this transaction, ITHPL will become a wholly owned subsidiary of SAMHI Hotels. The acquisition is being completely funded from the company’s internal accruals.
Commenting on the performance, Ashish Jakhanwala, CMD, SAMHI Hotels said, “I am delighted to announce the acquisition of Innmar Tourism and Hotels (ITHPL). This transaction aligns with our growth strategy, which focuses on turnaround opportunities in large office and aviation markets. We are confident that with the planned rebranding of the existing hotel and its repositioning in the upscale segment and addition of a second hotel in the upper-upscale segment within the same complex, we would add tremendous value for our company.”