ITC Hotels Limited Acquires 130-Key Hotel in Ahmedabad for Rs. 155 Crores
ITC Hotels Limited has announced the signing of a definitive agreement for the strategic acquisition of a 100% stake in GHK Hospitality and Infrastructures Ltd (GHK). The transaction involves Welcomhotel Ahmedabad, an Upper Upscale business hotel situated within a prominent commercial hub in Ahmedabad.The acquisition is structured at an Enterprise Value of Rs. 155 crores on a debt-free and cash-free basis, subject to customary adjustments under the definitive agreement. The company expects to complete the transaction within the current quarter. This move is anticipated to be EPS accretive for the company during the first full year of operations following the acquisition.
The property features include:
| Feature | Details |
|---|---|
| Total Rooms | 130 Keys |
| Property Type | Upper Upscale Business Hotel |
| Banqueting Space | 8,500 sq.ft |
| Amenities | Restaurant and rooftop swimming pool |
The acquisition is expected to enhance the company's owned asset portfolio in Ahmedabad while offering optimized capital efficiency compared to greenfield investments. By acquiring an established property, the company aims to capitalize on the diversified year-round demand driven by the city's expanding corporate footprint, industrial corridors, MICE events, and sports events.
Anil Chadha, Managing Director of ITC Hotels Limited, stated that the acquisition marks a milestone in the pursuit of growth aspirations by adding an owned property in one of India's fastest growing urban centers. He noted that transitioning the 130-room property from a managed contract to full ownership allows the company to unlock greater value from the asset.
The hotel is strategically located along Ashram Road, overlooking the Sabarmati Riverfront and providing proximity to both Ahmedabad International Airport and the Narendra Modi Stadium. Ahmedabad has emerged as one of India's top eight urban economies by GDP, supported by industrial corridors such as Dholera, GIFT City, and Sanand.
This acquisition follows the company's recent purchase of The Zuri Kumarakom, Kerala Resort & Spa, a luxury resort in a high growth leisure destination. Both transactions underscore a commitment to strengthening the corporate presence in key commercial and leisure destinations across India.
ITCHOTELS Stock Price Movement
Shares of ITC Hotels Limited today tumbled by 5.17% to settle at ₹174.00. The stock saw significant turnover as 10.76 million shares changed hands during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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