 "IHCL acquires 55% stake in Rajscape Hotels to enhance experiential leisure")
The board of directors of the Indian Hotels Company (IHCL), the hospitality arm of Tata Group that runs the Taj Hotels, approved the acquisition of around 55 per cent stake in Rajscape Hotels in an all-cash deal for an amount not exceeding Rs 18 crore, as per IHCL’s stock exchange filing.
Rajscape Hotels manages 16 boutique properties under the brand ‘Tree of Life Resorts & Hotels’ across India.
The deal is expected to be completed in 90 days, the company said in its filing.
“The company has entered into a share subscription and purchase agreement and a shareholders’ agreement to acquire approximately 55 per cent shareholding in Rajscape Hotels, subject to the fulfilment of certain conditions precedent,” said the company in a statement in the stock exchange filing.
With this deal, IHCL will further expand its partnership with Ambuja Neotia Group, which is active in the real estate, hospitality, healthcare, and education segments. “This acquisition aligns with IHCL’s pioneering ethos of creating destinations and building and scaling new hospitality formats,” said Puneet Chhatwal, managing director and chief executive officer, IHCL, in a statement. “In line with our growth strategy, it also reflects our vision of expanding existing partnerships. Currently, IHCL is in partnership with Ambuja Neotia Group for seven hotels and resorts featuring notable properties such as the Taj Chia Kutir and Taj Guras Kutir in Darjeeling and Gangtok.”
Chhatwal further added that recognising the growing demand for experiential leisure, IHCL will onboard the Tree of Life brand and scale it to 100 properties by 2030. Tree of Life Resorts is present in over 15 destinations in India, including off-beat locations like Dared, Dehradun, Varanasi, Binsar, Kumaon, and Udaipurwati. Its portfolio consists of 19 resorts and hotels, with two under development.
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“We are delighted to welcome IHCL to our newest venture, taking our collaboration to the next level. As leaders in Indian hospitality, IHCL has been instrumental in pioneering new destinations and travel segments, placing India on the global tourism map,” said Harshavardhan Neotia, chairman, Ambuja Neotia Group, in a statement. “With a proven track record of successfully scaling brands across various formats, we are confident in growing the Tree of Life portfolio with their expertise in developing and operating boutique leisure offerings.”
Rajscape Hotels reported a turnover of Rs 23.44 crore in FY24.