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

Swiss firm to acquire 10-15% stake in the hotel chain.

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.

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.

Credit Suisse would have a representative on the board of the hotel company and help it chalk out its long-term growth strategy, sources said.

ICICI Securities is the advisor to Credit Suisse for this deal. When contacted, an Apeejay Surrendra Group executive neither denied nor confirmed the development.

One of the oldest industrial groups of the country, the Apeejay Group was established in 1910 and has been running The Park chain of hotels for over 35 years.

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.

The Switzerland-based financial services company has ambitious plans for India. Although it has not announced any numbers it may invest in the booming real estate sector, industry experts said the foreign company might invest $1 billion in the next two years.