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.
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.
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
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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
The Rs 1,013.6 crore Initial Public Offering IPO of the company was subscribed 135 times.
Promoters and shareholders such as VKS Family Trust and PKS Family Trust will offload 7.45 lakh shares each