China’s Jin Jiang International has made a significant move into the Indian hotel industry.
Louvre Hotels Group, which was acquired by Jin Jiang for EUR1.3 billion (US$1.4bn) in 2015, has now taken a majority stake in Sarovar Hotels, which operates 75 hotels under three brands in India and overseas, plus a range of standalone F&B outlets.
Replying to Travel Daily’s query, Sarovar said it would not be able to reveal the percentage stake Jin Jiang is taking in the company, nor the value of the acquisition.
Louvre said that there would be “no change in management of the Sarovar Group” following the deal. The company plans to help expand the Sarovar portfolio both within India and internationally, while Louvre will also leverage Sarovar’s status in India to boost its own presence in the country. Currently, Louvre operates 22 hotels across India under its Golden Tulip brands.
“India, with its fast-growing economy, its global tourism potential and a significant under-penetration of branded hotel rooms, represents a new opportunity and a strategic market… for the group,” Louvre stated. “After launching a far-reaching scheme to strengthen its positions in China and Southeast Asia, Louvre Hotels Group continues to boost its presence in South Asia.
“The group has decided to become a majority stakeholder in Sarovar Hotels, an Indian company made up of 75 hotels [in] the premium, mid-range and budget sectors,” it confirmed.
The deal will make Sarovar part of one of the world’s largest hotel groups. Owned by the Shanghai government, Jin Jiang has acquired Louvre and Plateno Hotel Group in recent years, raising its global portfolio to in excess of 6,000 hotels.
“The association with Louvre Hotels Group will help us to spread our wings further and we will continue to develop our brands. With local and international capabilities, we aim to be the leading brand in the business and bring in major benefits to our guests,” said Anil Madhok, Sarovar’s executive chairman.
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