French hospitality major Louvre Hotels Group, part of Chinese Group Jin Jiang International, has acquired a majority stake in Indian hospitality chain Sarovar Hotels for an undisclosed amount.
"We have the majority stake but it is a joint venture. It is important not to destroy the value of the company. Everywhere in the world we don't change the DNA of the company," Louvre Hotels Group CEO Pierre-Frederic Roulot told PTI.
Louvre Hotels Group tries to use strength of local partners, he added.
Roulot however did not disclose the amount for which the stake has been acquired.
"The association with Louvre Hotels Group will help us to spread our wings further and we will continue to develop our brands. With local and international capabilities, we aim to be the leading brand in the business and bring in major benefits to our guests," Sarovar Hotels Executive Chairman Anil Madhok said.
This will help Sarovar Hotels to expand presence in India and Africa, where the company is mostly operating, he added.
The development is in line with the strategy of Louvre Hotels Group to boost its presence in South Asia, keeping up with the region's constantly growing leisure and business tourism.
There will be no change in management of the Sarovar Group and its experienced team will continue to provide expertise and manage the hotels under its brands, the companies said.
Both hotel groups share the desire to continue developing Sarovar Hotels brands. This platform will also sustain the development of Louvre Hotels Group brand which has been present in the Indian sub-continent since 2007 and currently manages hotels under its Golden Tulip umbrella brand.
"This transaction between Louvre Hotels Group and Sarovar Hotels offers unprecedented synergies between strong local brands and the world's 5th largest hotel group", the companies said.
Louvre Hotels Group is a subsidiary of Jin Jiang International Holdings Co Ltd, one of China's largest tourist and travel conglomerates.
It has about 1,175 hotels for a total capacity of nearly 1,00,000 rooms in 51 countries under its six brands: Premire Classe, Campanile, Kyriad, Tulip Inn, Golden Tulip and Royal Tulip.
Founded in 1994 by Anil Madhok, Sarovar Hotels has properties in the premium, mid-range and budget markets. The group is comprised of 75 hotels in over 50 cities and a total of nearly 6,000 rooms.
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