ITC acquires 100% stakes in GHK Hospitality & Infrastructures Ltd
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The upper-upscale business hotel features 130 spacious rooms, 8,500 sq.ft of banqueting spaces, a restaurant serving the finest Indian and global cuisines and a rooftop swimming pool.
ITC Hotels Limited has signed a definitive agreement to acquire a 100% stake in GHK Hospitality and Infrastructures Ltd, the owner of Welcomhotel Ahmedabad, for an enterprise value of INR 155 crores. The 130-key property, which ITC currently manages under an operating services agreement, represents a significant shift from a managed contract to full ownership. This move allows the group to unlock greater long-term value from the established asset as it strengthens its owned portfolio in one of India’s most dynamic commercial hubs.
The upper-upscale business hotel features 130 spacious rooms, 8,500 sq.ft of banqueting spaces, a restaurant serving the finest Indian and global cuisines and a rooftop swimming pool. The addition of this Hotel would further strengthen the company’s owned asset portfolio in Ahmedabad by straddling across all the branded hospitality market segments and price points. This value-accretive acquisition would reduce time-to-market and optimise capital efficiency vis-à-vis a greenfield investment and would provide the company with an opportunity to capitalise on the diversified year-round demand emerging from the city’s expanding corporate footprint, industrial corridors, MICE and Sports events. The transaction would be EPS accretive for the company in the first full year of the Hotel’s operations post the acquisition.
Speaking on the development, Anil Chadha, Managing Director, ITC Hotels Limited said, “Transitioning this established 130-room property from a managed contract to full ownership allows us to unlock greater value from the asset. Ahmedabad continues to be one of India’s most dynamic commercial and industrial centres, supported by significant infrastructure investments, strong long term demand fundamentals, and a diversified demand base. The hotel’s prime location, established brand positioning and consistent occupancy levels provides an attractive opportunity to enhance yields and cash flow generation over the long term.”
ITC Hotels Limited recently acquired The Zuri Kumarakom, Kerala Resort & Spa, a luxury resort in a high growth leisure destination. Both these moves underscore ITC Hotels commitment to strengthening its presence in key commercial and leisure destinations nationwide, reinforcing its position as a leading force in the industry's dynamic growth trajectory.
