MAC Charles (India), which owns the Le Meridien hotel in Bengaluru, said Embassy Property Developments has agreed to pay more than ` 644 crore for a nearly 73.5% stake held by its promoters.
Embassy Property will make an open offer for another 24.7% stake at `670 a share, MAC Charles said in a stock exchange filing. The deal with CB Pardhanani, the company chairman who sold the majority stake, is also at the same price, which is 29% more than the stock’s closing price of `519.45 on the BSE on Friday. Jitu Virwani, chairman of Bengaluru-based Embassy Group, refused to comment.
The 197-room hotel property , spread over three acres, sits opposite the golf course in the city . The hotel is currently operated by Starwood Group and has four restaurants, a bar and lounges. “The hotel will be run by the Starwood Group, but Embassy may refurbish the hotel and rebrand it at a later stage,“ said a person with knowledge of the deal.
Embassy Property is looking to ramp up its presence in the hospitality business. It plans to have 1,700 rooms by 2022 under its portfolio. It is building many hotels and expects that the hospitality industry will turnaround soon, the person said.
The Embassy Group has tied up with Hilton to deve lop the country’s lar gest twin hotel in Bengaluru with a to tal investment of mo re than `1,000 crore.
The group plans to build business hotels across existing and upcoming business parks in Bengaluru, in association with investor partner Blackstone Group.
The company plans to replicate a similar scale project at the 100-acre Embassy Tech Village, coming up in East Bengaluru. Embassy TechVillage will also house ecommerce firm Flipkart as one of its key tenants. In 2014, the Embassy Group opened a 247-room Hilton hotel in its office park Embassy Golf Links at an investment of `350 crore.
Source: ET Realty