ITC raises stakes in hotel rivals

ITC’s appetite for hotel rivals continues unabated. The diversified company from Calcutta has built up further positions in Hotel Leelaventure and EIH Ltd. Russel Credit, the investment arm of ITC, bought around 27.1 lakh shares in Leelaventure between January and March. During the same period, it acquired 93,943 shares in EIH, raising its holding to 14.98 per cent. This is the highest ITC has held in EIH, which owns Oberoi Grand in Calcutta, in the last seven years. ITC is now just 78,333 shares away from triggering an open offer. According to the Substantial Acquisition of Shares and Takeovers regulation of the Securities and Exchange Board of India, a company has to make a mandatory open offer for an additional 20 per cent once its holding in an entity reaches 15 per cent. As on December 31, 2008, ITC held 14.96 per cent in EIH. ITC has maintained that the share purchase is not strategic. In Leela, its stake is 3.72 per cent, which is not significant, though it is steadily acquiring shares. ITC checked into the Bangalore-based hotel chain in the September-December quarter of the last fiscal with a 3 per cent stake, as The Telegraph had first reported. When contacted to comment on ITC’s buying spree, an ITC spokesperson said, “These are routine treasury operations.” In the past, the EIH management had not given much importance to ITC’s shareholding in the company. ITC’s stake had remained near 15 per cent for a long period. Unless the cigarette-to-hotel conglomerate crossed the threshold, there was nothing for EIH to talk about, EIH officials had said. Leela has also remained silent on ITC’s overtures so far. “We do not disclose our plans. But as you can see, it is listed as a long-term investment in the balance sheet,” ITC chairman Yogi C. Deveshwar had said, while commenting on his company’s strategy for EIH at the annual general meeting in July 2008. ITC had picked up a stake in EIH — which owns and manages the Oberoi chain of hotels in India and abroad — in 2001, fuelling speculation of a hostile takeover. However, ITC held on to its stake without threatening to replace the EIH promoters or the management during the period. In the meantime, it strengthened its presence by setting up hotels. Promoters P.R.S. Oberoi and his family own a 46.42 per cent stake in EIH. If ITC decides to make an open offer for another 20 per cent, it cannot hope to get control of EIH unless a section of the promoter family offload their stake. ITC’s stake purchase in Leela would also not give the Nairs — the promoters of Hotel Leelaventure — any cause for worry as they hold a majority 51.56 per cent in the company. ITC ranks somewhere in the middle between EIH and Leela. EIH, formerly East India Hotels, has a bigger presence than ITC in India and abroad. ITC does not have an overseas hotel. Leela, on the other hand, is on an expansion mode, building on its oldest and most successful hotel in Bangalore.

Source: Telegraph

Sodexo Announces the Acquisition of Radhakrishna Hospitality Services Group

Sodexo (PARIS:SW) (OTCBB:SDXAY) announced today that it has signed a binding agreement to acquire the Radhakrishna Hospitality Services Group (RKHS), one of the leading providers of Food and Facilities Management services in India.
Completion of this transaction is subject to customary closing conditions. The parties expect to close the transaction before the summer of 2009.
Founded in 1966, RKHS is today a leader in the Food and Facilities Management services market in India, serving a prestigious client base in 22 states and employs 20,000 people across more than 1,000 sites. For Fiscal year ended March 31, 2008, RKHS generated 70 million euros of revenues.
Sodexo has been a major provider of Food and Facilities Management services in India for more than 10 years. With this acquisition, Sodexo significantly reinforces its position and takes clear market leadership in India, a country with the second largest population in the world and which offers considerable future growth potential.
Through a new combined entity, representing Sodexo’s existing Food and Facilities Management operations in India together with RKHS, Sodexo will offer its clients a comprehensive range of tailored solutions designed to enhance their reputation, improve efficiency of their employees, preserve the value of their assets and optimise their resources.
With a view to bringing his valuable insight and knowledge of both the Company and the Indian market, Mr Raju Shete will become non executive Chairman of the combined entity.
About Sodexo
Sodexo, founded in 1966 by Pierre Bellon, is a world leader in Food and Facilities Management services, with more than 355,000 employees on 30,600 sites in 80 countries. For Fiscal year ended August 31, 2008, Sodexo had revenues of 13.6 billion Euro. Listed on Euronext Paris, the Group’s current market capitalization is 5.3 billion Eur

Indian Hotels buys 10% of Orient Express for $211 mn

The Tata group’s penchant for history is remarkable. Eight months ago they snapped up Corus — formerly British Steel — and a symbol of British industrial might. Then they bought Pierre, the fabled New York hotel built by a Corsican immigrant as the Great Depression was breaking upon the New World in 1929. On Monday, they did one better.

Group company Indian Hotels snapped up 10% of Orient Express Hotels Trains and Cruises for about $211 million. Orient Express owns, part-owns and manages 35 hotels in 25 countries. It also runs cruises and luxury trains, the most famous being the Venice Simplon-Orient-Express, the modern day avtaar of the legendary luxury train.

(Source: Economic Times)

Credit Suisse to check in to Park Hotels with $55 m deal

Credit Suisse is picking up a minority stake for $55 million (Rs 220 crore) in the Park Hotels chain. The deal puts the valuation of the closely-held Apeejay Surrendra Hotels, which owns and manages The Park chain in six cities, among the top five hotel companies in the country. (see table).

Sources close to the development said Credit Suisse’s real estate fund would acquire anything between 10 and 15 per cent in Kolkata-based Apeejay Surrendra Hotels in a structured deal. This deal values the company at Rs 1,500-2,200 crore.

This is Credit Suisse’s second investment in the real estate sector, the first being its acquisition of 75 per cent in a Rs 300-crore infotech park-cum-five-star-hotel project of developer Vascon Engineers, based in Pune.

(Source: Business Standard)

Temasek picks up 21.74% in GL Hotels

Dunearn Investments (Mauritius), a wholly-owned subsidiary of Asia investment firm Temasek Holdings, is acquiring a 21.74% stake in GL Hotels for Rs 125 crore. Mumbai-based GL Hotels, promoted by the Ghais of the Kwality and Gaylord restaurant fame, now operates the boutique Intercontinental (IHG) Marine Drive in south Mumbai.

It is foraying into boutique and lifestyle hotels and is understood to be talking to a number of global hospitality majors for the same

Dubai Ventures buys stake in Bharat Hotels

Dubai ventures has bought in an equity stake of $40 million in Bharat Hotels, one of India's largest hotel chains in India.

Bharat Hotels currently operates InterContinental The Grand hotels in the major cities of India.

Dubai Ventures is the equity investment arm of Dubai Investment Group (DIG), and invests across the world, but predominantly focuses on Asia.