- ITC Hotels to acquire GHK Hospitality for $16.1M.
- Deal to improve capital efficiency, capture year-round demand.
- Acquisition expected to close this quarter.
ITC HOTELS LTD. will acquire GHK Hospitality and Infrastructures Ltd. for an enterprise value of $16.1 million. GHK owns the Welcomhotel Ahmedabad, which is at the center of the transaction.
ITC operates the 130-room Welcomhotel under an operating services agreement, the company said in a statement. Following the acquisition, ITC Hotels will convert the property from a managed hotel to a wholly owned asset, expanding its owned portfolio in Ahmedabad while reducing time to market compared with a greenfield development.
The acquisition, for a 100 percent stake, will be completed on a debt-free, cash-free basis, subject to customary adjustments. It is expected to close this quarter.
“The acquisition of this hotel marks another milestone in the company's growth strategy by adding another owned property in one of India's fastest-growing urban centers," said Anil Chadha, managing director of ITC Hotels. "Converting this established 130-room property from a managed hotel to a wholly owned asset allows us to unlock greater value. Ahmedabad remains one of India's leading commercial and industrial hubs, supported by infrastructure investment, strong long-term demand, and a diversified customer base. The hotel's location, brand, and consistent occupancy provide an opportunity to improve yields and generate cash flow over the long term."
The acquisition will improve capital efficiency and capitalize on year-round demand driven by corporate activity, industrial corridors, MICE business and sporting events, the statement said. The transaction is expected to be accretive to earnings per share in the first full year after closing.
The hotel, on Ashram Road overlooking the Sabarmati Riverfront, has 8,500 square feet of banquet space, a restaurant serving Indian and international cuisine, and a rooftop pool. It is near Ahmedabad International Airport and Narendra Modi Stadium.
Ahmedabad is one of India's largest urban economies, supported by corporate activity and industrial hubs including GIFT City, Dholera, and Sanand. The acquisition follows ITC Hotels' purchase of The Zuri Kumarakom Kerala Resort & Spa, expanding its presence in business and leisure markets.
Separately, ITC Hotels Ltd. and Sumeru Hospitality signed a management agreement to develop the 99-room Welcomhotel by ITC Hotels Mysuru in Karnataka, marking the brand's entry into Mysuru.
