ITC purchases all of GHK Hospitality & Infrastructures Ltd.
With 130 roomy rooms, 8,500 square feet of banqueting spaces, a restaurant offering the best Indian and international cuisines, and a rooftop pool, this luxury business hotel has a lot to offer.
For an enterprise value of INR 155 crores, ITC Hotels Limited has reached a final agreement to purchase a 100% share in GHK Hospitality and Infrastructures Ltd., the company that owns the Welcomhotel Ahmedabad. A major change from a managed contract to full ownership is represented by the 130-key facility, which ITC now oversees under an operating services agreement. By strengthening its owned portfolio in one of India’s most vibrant commercial centers, this move enables the group to extract greater long-term value from the established asset.
With 130 roomy rooms, 8,500 square feet of banqueting spaces, a restaurant offering the best Indian and international cuisines, and a rooftop pool, this luxury business hotel has a lot to offer. By spanning all branded hospitality market categories and pricing points, the hotel’s inclusion would bolster the company’s owned asset portfolio in Ahmedabad. In comparison to a greenfield investment, this value-accretive acquisition would shorten time-to-market and maximise capital efficiency. It would also give the business a chance to take advantage of the diverse year-round demand arising from the city’s growing corporate footprint, industrial corridors, MICE, and sporting events. In the first full year of the hotel’s operations following the acquisition, the deal would be EPS accretive for the business.
“Transitioning this established 130-room property from a managed contract to full ownership allows us to unlock greater value from the asset,” stated Anil Chadha, Managing Director of ITC Hotels Limited, regarding the development. With substantial infrastructure expenditures, solid long-term demand fundamentals, and a diverse demand base, Ahmedabad remains one of India’s most vibrant commercial and industrial hubs. The hotel offers a compelling chance to improve returns and cash flow production over time thanks to its strategic location, well-established brand positioning, and steady occupancy levels.
Recently, ITC Hotels Limited purchased The Zuri Kumarakom, Kerala Resort & Spa is a posh resort in a rapidly expanding recreational area. Both of these actions highlight ITC Hotels’ dedication to bolstering its footprint in important business and recreational locations around the country, solidifying its standing as a driving force in the sector’s rapid expansion.
