MRG Hospitality and Infrastructure Pvt Ltd, a Bangalore-based company which owns hotels and restaurants, has acquired a 70-room Express Sarovar Portico, the four-star business hotel at Surajkund in Faridabad from Express Infocom, according to a report by The Economic Times.
Financial terms of the deal have not been disclosed. However, the report said citing unnamed industry experts that it could be Rs 50-55 crore (approximately $8 million).
MRG's chairman and managing director Prakash Shetty told the paper that the company funded the acquisition through internal resources.
The three-year-old hotel is being managed by Sarovar Hotels & Resorts, which would continue to run the property for three more months. After this, MRG Hospitality is expected to rebrand the property under its Goldfinch brand, the paper said.
"Surajkund is an upcoming city, which has been declared as a smart city too. There are a lot of offices and industries in that belt which will be good business for the hotel," Shetty said.
Separate emails sent to Sarovar Hotels and MRG Hospitality for confirmation and further details related to the development did not elicit any response till the time of filing this article.
Recently, MRG Hospitality acquired Mumbai-based Aura Grande, a four-star hotel run by Annakoot Properties Pvt Ltd, for Rs 100 crore ($15.2 million).
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 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.