MRG Hospitality and Infrastructure Pvt Ltd, a Bangalore-based company which owns hotels and restaurants, has acquired Mumbai-based Aura Grande, a four-star hotel run by Annakoot Properties Pvt Ltd, for Rs 100 crore ($15.2 million), The Economic Times reported, citing the company's managing director.
'The deal has been funded through a mix of debt and equity," K Prakash Shetty, chairman and managing director, MRG Group, told the newspaper.
MRG Group will invest another Rs 10 crore in Aura Grande for revamping the property.
"We wanted a presence in northern and southern parts of Mumbai; this property will establish our presence in the northern part," said Shetty, adding that the company is also scouting for opportunities to leave its mark in Navi Mumbai.
Annakoot Properties was incorporated in 2003 and has 90 rooms and suites.
MRG Hospitality operates four boutique hotels in Bangalore and Mangalore under the brand name 'Goldfinch' and 15 restaurants. The company is looking to grow its portfolio to 12 properties in three years. It was founded in 2008.
MRG Group, a business conglomerate, has interests in resorts, educational institutions and infrastructure companies besides hotels.
The group has signed an agreement to invest around Rs 150 crore to develop a 173-key five-star resort in Goa with Hilton Worldwide. It will later rechristen it Hilton Gardenia.
In another deal, it will also invest about Rs 160 crore to build a 200-room 'Courtyard by Marriott' property in Bangalore. These two hotels are expected to open in March 2016.
In the sector, recently, Ceres Hotels, a unit of MetTube Sdn Bhd, signed an agreement to acquire Leela Hotel of Hotel Leela Venture for Rs 725 crore on a slump sale basis. Also, Vascon Engineers Ltd along with other investors sold its entire stake in Intercontinental Hotels Group India’s Holiday Inn.