Tata Group’s flagship hospitality firm and India’s largest hotel chain operator Indian Hotels Company Ltd (IHCL) has sold its Blue Sydney Hotel to Hong Kong based-Hind Group for A$32 million (around $30 million), company announced on Friday.
“IHCL is looking for this divestment to focus in its core markets and create liquidity to fund its short to medium fund requirements for its ongoing expansion,” the company said in a stock exchange announcement.
According to the release, the property is acquired by Jhunjhunwala family controlled Hind Hotels & Properties Group which owns and operates hotels and serviced apartments under the Ovolo brand. The company founded by Girish Jhunjhunwala in 2002 has six hotels and serviced apartments in its portfolio.
IHCL did the transaction through its wholly owned offshore subsidiary Samsara Properties Ltd. The transaction is subjected to fulfilment of conditions and scheduled to be completed by October 31, 2014, according to the release.
The 100-room hotel was earlier acquired by IHCL in 2006 for $27.1 million.
Amidst homegrown companies looking to expand overseas and with larger companies looking to acquire smaller players, hotel industry is noticing strong M&A activity. Earlier this week country’s largest vacation ownership company Mahindra Holidays and Resorts acquired 18.8 per cent in Finland-based Holiday Club Resorts Oy.
The domestic market is noticing its own share with GTI Capital-backed Samhi Hotels acquiring Royal Orchid’s Hyderabad based Regenta One and last year acquiring its Ahmedabad-based hotel for Rs 67 crore.
(Edited by Joby Puthuparampil Johnson)