ITC Hotels Ltd has signed a definitive agreement to acquire 100% stake in GHK Hospitality and Infrastructures Ltd (GHK), which owns the 130-key Welcomhotel Ahmedabad.
The acquisition will be completed at an enterprise value of ₹155 crore on a debt-free and cash-free basis through a combination of primary subscription and secondary purchase of GHK’s equity shares.
Strengthening portfolio
The hotel is currently operated by ITC Hotels under an Operating Services Agreement. With the acquisition, the company will convert the managed property into a fully owned asset.
The transaction is expected to strengthen ITC Hotels’ owned asset portfolio in Ahmedabad and enable it to cater to all major hospitality segments and price points in one of India’s fastest-growing urban markets.
Growth strategy
ITC Hotels Managing Director Anil Chadha said “The acquisition of this hotel will mark another milestone in pursuit of the Company’s growth aspiration by adding another owned property in one of the fastest growing urban centres of India.
Transitioning this established 130-room property from a managed contract to full ownership allows us to unlock greater value from the asset,” he said.
Cash flow
According to him, the hotel’s prime location, established brand positioning and consistent occupancy levels provide an attractive opportunity to enhance yields and cash flow generation over the long term.
The company said the acquisition is value-accretive and provides an opportunity to capitalise on Ahmedabad’s diversified year-round business and leisure travel demand.
Strategic location
Welcomhotel Ahmedabad is located on Ashram Road overlooking the Sabarmati Riverfront. The property enjoys proximity to Ahmedabad International Airport and the Narendra Modi Stadium.
The acquisition follows ITC Hotels’ recent purchase of The Zuri Kumarakom Kerala Resort & Spa, reflecting the company’s strategy of expanding its owned portfolio across key commercial and leisure destinations.