Marriott plans to buy minority stake in Chandru Raheja's Chalet Hotels; US hospitality chain eyes to expand India assets in 2019

Marriot may buy 10% stake in Chalet Hotels, which owns top-end hotels in India including JW Marriot Mumbai and the Bengaluru Marriot, for about Rs 574 crore.

FP Staff January 28, 2019 15:36:31 IST
Marriott plans to buy minority stake in Chandru Raheja's Chalet Hotels; US hospitality chain eyes to expand India assets in 2019
  • Marriott International plans to acquire a minority stake of 10% in Chandru L Raheja-led Chalet Hotels

  • Chalet Hotels will hit the market with Rs 1,600-crore initial public offering

  • On 19 January, Marriott International announced that it would open 20 hotels in India this year

US-based hospitality company Marriott International plans to acquire a minority stake of 10 percent in Chalet Hotels of Chandru L Raheja, said a media report.

Marriot may buy 10 percent stake in Chalet Hotels, which owns top-end hotels in India including JW Marriot Mumbai and the Bengaluru Marriot, for about Rs 574 crore, said a report in The Times of India.

Marriot's plan to buy a stake in Chalet Hotels indicates the world's largest hospitality chain's big bet on India, where it operates 100 properties, said the report.

Marriott plans to buy minority stake in Chandru Rahejas Chalet Hotels US hospitality chain eyes to expand India assets in 2019

Representational image. Reuters

Chalet Hotels on Friday announced a Rs 1,600-crore initial public offering (IPO) which includes the issue of fresh equity and also sale by promoters, said a PTI report.

This is one of the biggest offerings in the IPO market, which has otherwise been a lull in recent months due to volatilities in the market.

The IPO consists of equity shares of face value of Rs 10 aggregating up to Rs 950 crore and an offer-for-sale of up to 2.46 crore equity shares.

On 19 January, Marriott International announced that it would open 20 hotels in India this year and the first of these was inaugurated in Ahmedabad — Renaissance Ahmedabad Hotel.

The world's largest hotel chain is planning to open seven more hotels in Gujarat in the next three years, Marriott International vice-president (South Asia) Neeraj Govil said.

"This year, we are opening 20 hotels in India and this 'Renaissance' (in Ahmedabad) is the first one," he said.

At present, Marriott International, having over 6,000 hotels across the world, operates 98 properties in the country under 15 different brands, including 'Renaissance', he added.

While Govil is bullish about the growth potential in India and Gujarat, he feels the Goods and Services Tax (GST) range of 18 percent and 28 percent (depending on room tariffs) should come down.

In December 2018, Marriott International opened Fairfield by Marriott Goa Anjuna, making it the 14th Fairfield hotel in India.

"This is our first Fairfield by Marriott property to debut in Goa and the 15th for the brand in South Asia," Mike Fulkerson, vice president, brand and marketing, Asia Pacific, Marriott International said.

 

With PTI inputs

 

 

To keep watching India’s No. 1 English Business News Channel – CNBC-TV18, call your Cable or DTH Operator and ask for the Colors Family Pack (inclusive of 24 channels), available for Rs. 35/- per month, or subscribe to the channel for Rs. 4/- per day.

To keep watching the Leader in Global Market & Business News – CNBC-TV18 Prime HD, call your Cable or DTH Operator and ask for the Colors Family HD Pack (inclusive of 25 channels), available for Rs. 50/- per month, or subscribe to the channel for Rs. 1/- per day.

 

Updated Date:

also read

Sapphire Foods: Shares debut on stock market at Rs 1,360; all you need to know
Business

Sapphire Foods: Shares debut on stock market at Rs 1,360; all you need to know

On the Bombay Stock Exchange (BSE), the stock listed at Rs 1,360.75 apiece and on the National Stock Exchange, the opening price was Rs 1,368 per share against the issue price of Rs 1,180

Go Fashion IPO share allotment expected today; follow these steps to check allotment status
Business

Go Fashion IPO share allotment expected today; follow these steps to check allotment status

The Rs 1,013.6 crore Initial Public Offering IPO of the company was subscribed 135 times.

Go Fashion IPO opens today at price band of Rs 655 to Rs 690; here's everything you need to know
Business

Go Fashion IPO opens today at price band of Rs 655 to Rs 690; here's everything you need to know

Promoters and shareholders such as VKS Family Trust and PKS Family Trust will offload 7.45 lakh shares each