Hospitality sector sees revival, posts record m&a deals in 2015

1. Hospitality Sector Sees
Revival, Posts Record
M&A Deals in 2015

2. Contd…
Indian hospitality sector has posted record number of deals this year -highest
in the past four years -with softening of valuations and improved market
outlook This year, there were 10 hotel transactions involving operational
assets which are almost equal to the combined number seen in the past four
years, said data compiled by the hotels and hospitality group of property
consultancy JLL.
“Hospitality M&A space has seen more deals taking place in the current year
than in any single year over the last six to seven year peri od. This augurs
well for the indus try that has witnessed a severe slow down and confirms
renewed investor interest in hospitality re lated investments,“ said Mandeep
S Lamba, managing director India Hotels & Hospitality Group at JLL which
brokered the last hotel deal of 2015 involving investment group SAMHI
Hotels acquisition of a five star property in Ahmedabad.

3. Contd…
Most of these deals were in the lux ury and upscale hotel segments, a major
change from previous years.
Some of the major deals that happened this year include luxury property The Leela,
Goa, being bought by London-based business man Raj Bagri; Radisson Blu Resort &
Spa, Alibaug, was acquired by stock market veteran Radhakishan Damani;
investment group SAMHI Hotels' acquisition of Four Points by Sheraton, Vizag; ITC's
acquisition of luxury property Park Hyatt Hotel, Goa; and Xander Group selling its
investment in boutique hotel Devi Garh Palace, Udaipur.
The Park Hyatt Goa deal, however, has been caught in a legal battle after the owner
of the property Blue Coast Hotels moved the Bombay High Court challenging the
auction and got a status quo order.
The deal space in the Indian hospitality market has been dominated by single asset
transactions.

4. Contd…
“What we see different now is that some sellers are willing to reduce
the asking price they had in 2014 as there is not much competing
capital for a hotel asset in the market and hence rationalisation of sale
price is one way to get a deal done,“ said Ashish Jakhanwala, founder
and CEO of SAMHI Hotels, a hotel development and investment
company, which acquired two hotel assets during 2015.
Industry experts said hotel valuations have softened by around 1015%
in the last one year.
Jakhanwala added that lenders to hotel projects too have started
playing an active role in transactions, not just for non-performing
assets (NPA) but also for assets where they see potential stress.

5. Contd…
After six years of downward pressure and constant supply increase,
hotel industry has seen revival which has rendered the market ready
for acquisition and consolidation. “Demand growth in major mar kets
has been in the range of 1218%,“ said Sanjay Sethi, MD & CEO of Chalet
Hotels, which is the hospitality arm of real estate developer K Raheja
Corp. The company is currently evaluating acquisition opportunities in
markets such as Delhi, Pune and Goa. “The opportunities lie with
hotels under debt pressure where lenders are putting them on the
block to recover the debt,“ Sethi said.
Industry experts say the deal momentum is likely to continue to 2016
with further improvement in market conditions.

6. For details and bookings contact:-
Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother
marketingandcommunicationconsultants.com)
Email :-saxbeeconsultants@gmail.com
Mobile No. +91-9818308353
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015