Indian hospitality sector may see many more deals in 2019
Hoteliers and analysts expect 2019 to be a bumper year for deals in India’s hospitality sector following Brookfield’s purchase of Hotel Leela venture’s assets, the sale of Keys Hotels to Lemon Tree and Blackstone’s potential acquisition of Golden Jubilee hotels, apart from a robust performance in the fourth quarter of 2018.
Hotel transaction volumes could cross $800 million in 2019, the highest for the Indian hospitality industry, HVS Anarock estimates.
“The sale of the Leela Hotels portfolio is a welcome development as it releases a leading Indian luxury portfolio from the crippling crisis it had been facing over the last several years,” said Mandeep Lamba, president, South Asia, at HVS Anarock. “This also indicates a renewed interest in the Indian hospitality sector from leading global investors and augurs well for the transaction markets.”
Last week, Leela venture said Canadian alternative asset management company Brook field had agreed to buy its hotels in New Delhi, Bengaluru, Udaipur and Chennai for Rs 3,950 crore. Lemon Tree Hotels signed a non-binding term sheet with Berggruen Hotels this month to acquire its loss-making Keys Hotels for an estimated $70 million.