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Hotel Chains Carlson, Choice Take M&A Route To Expand In India

14 January, 2010

The acquisition trend is largely led by global hospitality majors who are keen on a pan-India presence.

Two gobal majors, Carlson Hotels Worldwide and Choice Hotels International Inc, have recently strengthened their presence in the Indian market through the inorganic route. 

While Carlson has increased its stake in RHW Hotel Management SErvices, owners of Radison brand in India, Choice Hotels International Inc, a US-based mid-market hotel chain operator, has announced plans to acquire the remaining 60% stake in Choice Hospitality India Ltd for an undisclosed sum. 

Carlson has acquired the shares from Umak Investment Company Pvt Ltd for an undisclosed sum, which held 74% stake in RHW. RHW has been managing the Carlson branded hotels in India since 1998. 

Carlson now owns 87% stake in RHW from 13% earlier, said the company in a statement. The remaining 13% is held by private investors. The transaction is subject to government approval.

The acquisition comes at a time when the company has announced its growth plan for Carlson Hotels in India. It has planned to add 50 new hotels in the next three years, that include 25 new Radisson hotels. Carlson currently runs 28 hotel properties in India across four brands such as Radisson Hotels & Resorts, Country Inns & Suites, Park Plaza Hotels & Resorts and Park Inn. The group is also set to launch a new property under the brand name Regent Hotels & Resorts in Gurgaon in 2013. 

“The acquisition is a natural progression for Carlson as we continue to grow in this key market,” Hubert Joly, president and CEO of Carlson said in the statement. 

The acquisition will result in a new integrated organisation for Carlson Hotels in India, encompassing development, projects, operations, marketing and sales. The new entity will initially hire 70 employees, taking total employee strength of Carlson to 5,700 in India. KB Kachru, Carlson Hotels’ executive vice president for South Asia will lead the team, added the statement. Carlson Hotels has a strong global footprint as well with properties at over 1,060 locations in 77 countries. 

Choice Hospitality India, which is the franchise of Choice Hotels International brand, operates 28 properties in over 21 destinations in India, and another 14 properties are under different stages of development. 

It runs its hotels under brand name of Comfort (Inn and Suites), Quality, Sleep Inn and Clarion. Some of the properties are located at cities including New Delhi, Mumbai, Chennai, Ahmedabad, Bangalore, Gurgaon and Hyderabad.

 


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Hotel Chains Carlson, Choice Take M&A Route To Expand In India

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