Skift Take
Two back-to-back hotel deals in Bengaluru point towards a high investor interest. Behind this interest lie several factors that are making the city's hotel market lucrative.
Bengaluru’s hospitality market is buzzing as two hotel acquisition deals were finalized in the city over the past few days. The two deals amounted to INR 4.85 billion ($57.8 million).
SAMHI Hotels acquired Innmar Tourism and Hotels for an enterprise value of INR 2.05 billion ($24.4 million) on Friday. As part of this deal, SAMHI also acquired the 142-room Trinity Hotel in the Whitefield area of Bengaluru. The complex has the opportunity to add a second hotel with 200-220 rooms. The deal was facilitated by real estate services company JLL.
On Monday, Juniper Hotels said in an exchange filing that it entered into a loan agreement with ICICI Bank for INR 2.8 billion ($33.3 million). The loan is meant to acquire a 220-key hotel asset situated near the Bengaluru airport from Twenty Fourteen Hotels. The property, spread across 6.5 acres of land, is designed to be a five-star hotel.
The Driving Factors: JLL India managing director for hotels and hospitality group Jaideep Dang told Skift that the acquisition comes on the back of increasing demand for office spaces. A lot of companies are placed in Bengaluru and are further populating the city. Because of that, there is a growing demand for hotel rooms, he said.
“The main reason driving the hotel sector in Bengaluru is the business demand. It mainta