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The National Company Law Tribunal (NCLT) has commenced insolvency proceedings against Tulip Hotels following the hotel chain's alleged default on loan guarantees worth INR 900 crores. The claim, first initiated by Yes Bank and later assigned to JC Flowers, involves Tulip Hotels' guarantees for loans disbursed to Cox and Kings and Ezeego One Travel & Tours. Contrarily, Tulip Hotels denies any financial ties to these companies, accusing the lender of document fabrication. The case marks a significant development in the Indian hospitality industry and sets the stage for intriguing legal battles ahead.Read more
The Indian hospitality sector is set to attract investments exceeding $2.3 billion in the next two to five years, driven by factors such as a successful vaccination program, border reopening, lifted travel restrictions, and consistent economic growth. A report by CBRE South Asia predicts the addition of 12,000 hotel rooms in 2023 and a compound annual growth rate (CAGR) of 3.3% by 2025. Demand is expected to outpace supply, leading to positive performance indicators like occupancy rates and revenue per available room (RevPAR). International hotel chains and private equity funds have shown significant interest in investing in India's growing hospitality industry.Read more
Chalet Airport Hotel, a subsidiary of Chalet Hotels, has partnered with Indian Hotels Company (IHCL) to open a luxurious Taj-branded hotel at New Delhi's Indira Gandhi International Airport. The upcoming hotel, located near terminals 3 and 2, will feature 400 rooms, dining facilities, and conference spaces. The franchise agreement aligns with IHCL's expansion strategy, while Chalet Hotels reported strong financial results, including a significant increase in revenue and profits. The Taj brand will now have a presence in Delhi, Mumbai, and Bengaluru airports.Read more
Reliance Retail Ventures Ltd (RRVL) has acquired all Indian assets of German food wholesaler Metro AG, including 31 wholesale stores and six properties, for ?0.3 billion (?2,700 crore). The sale, which resulted in an EBITDA gain of ?150 million (?1,345 crore) for Metro AG, aligns with the latter's long-term growth strategy. All stores will retain the Metro brand during the agreed transition period. This significant acquisition bolsters Reliance Retail's footprint in the Indian market.Read more
The retail megawatt Lifestyle has set its sights on expanding its retail presence to small towns in India within the next few years. Encouraged by the positive response received in cities like Raipur and Guntur, the company will open over 50 stores over next couple of years, with more 20 slated for this financial year itself. Along with a new avatar, the new stores will be smaller in size compared to their metro counterparts and will offer clothing, footwear, and beauty products at affordable prices.Read more
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The Runwal Group has acquired GIC's entire 50% ownership in their joint retail development R City Mall for almost Rs 1,000 crore, making it one of the biggest purchases of a single property in the Indian retail sector. The mall is located in Mumbai's Ghatkopar area and features over 300 businesses in fashion, food, beverage, and entertainment industries. The acquisition allows Runwal to fully manage the asset and is expected to benefit from the increasing demand for high-quality retail assets in India.Read more
Shoppers Stop (SHOP) reports impressive revenue growth, driven by a focus on private labels, beauty, and strategic partnerships. The company has established itself as a one-stop fashion destination in metropolitan cities, offering a diverse range of products and catering to various consumer segments. Under Venu's leadership, Shoppers Stop has increased focus on private label brands and improved department store throughput. As the brand continues to expand its presence and product offerings, it is poised to maintain its reputation as a leading fashion retailer in the country.Read more
Hyatt has acquired luxury hotel guide Mr & Mrs Smith for £53 million as the travel industry experiences a post-pandemic boom. Founded by Tamara and James Lohan, the platform features 1,500 boutique hotels and locations with anonymous reviews from experts and celebrities. The acquisition comes as luxury travel operators enjoy record sales due to pent-up demand and savings accumulated during lockdowns. More than 120 Mr & Mrs Smith staff will join Hyatt's commercial services team, with Tamara Lohan remaining as chief executive, while her husband continues as chief creative officer.Read more
Indian Hotels Company Limited (IHCL), which is supported by the Tata Group, reported a historic annual profit amounting to Rs 1,053 crore in the financial year 2023, compared to a loss of Rs 265 crore in the previous year, due to effective asset management, demand surpassing supply, robust portfolio growth, among other factors. IHCL saw a 90 percent increase in revenue from operations, totalling to Rs 5,810 crore in the same period.Read more
After 13 rounds of intensive bidding, the three-winning bidders of the now-defunct Rajesh LifeSpaces hotel property in Mumbai bidders are the hospitality and restaurant conglomerate Sankalp Recreation from Ahmedabad, Shri Ram Multicom from Kolkata and Rare Asset Reconstruction Co. The valuer chosen by the banks will now assess the three bidders' varied strategies. Lenders will put the best plan up for voting based on the net present value in accordance with the valuer's report.Read more
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