Accor SA, the largest international hotel operator in the Asia-Pacific region, had sold 60 per cent stake in 15 wholly owned Formule 1 hotel projects in India to private equity firm SAMHI Hotels for an undisclosed sum, the company said on Monday.
The economy brand, Formule 1, which has two operational hotels in India, will see the changed approach of the group as it now follows an ‘asset-light’ strategy.
Formule 1 competes with the Ginger brand from Roots Corp, a 100 per cent subsidiary of The Indian Hotels Co Ltd. Room per night charges of Formule 1 start from Rs 2,112 (Greater Noida).
Following the deal, Accor will maintain a 40 per cent stake in the hotels and will continue to operate them under long-term operating agreements. "Accor will retain the rights to own and/or develop further Formule 1 projects in India," the French company said in a statement.
Today, Accor has 15 wholly-owned and leased developments under the Formule 1 brand of hotels in India. Of these, the first two hotels have opened in Greater Noida and Ahmedabad, with another hotel opening scheduled in Pune's Hinjewadi area by the end of this year.
SAMHI is an Indian hotel investment and development firm focusing on ownership of branded hotels across key cities in the Indian sub-continent, specifically in the “value-for-money” mid-scale and economy segments. SAMHI, whose founders include Steve Rushmore, Ashish Jakhanwala and Manav Thadani, directly and through its subsidiaries operates a mid-scale hotel in Ahmedabad with another 150-room hotel opening in Bangalore in mid 2013.
In addition, the firm has commenced development of properties in Bangalore, Chennai and Gurgaon, which comprise four hotels and more than 650 keys under development with international brands such as Courtyard and Fairfield by Marriott and Hyatt Place.