Kamat Hotels has bought a 60% stake in Concept Hospitality for Rs 127/share, reports CNBC-TV 18’S Rahul Arora.
According to Rahul Arora, Kamat Hotels has acquired 60% at Rs 120 per share. Concept Hospitality is not a listed company; it is a sister concern of the promoter Vithal Kamat who holds 60% in his personal capacity which is now been transferred to the listed entity Kamat Hotels (India) Ltd.
This essentially gives Mr. Kamat an indirect holding into Concept Hospitality via his 73% holding that he currently has in the listed Kamat Hotels. The other 40% in Concept Hospitality is currently been held by Mr. Kannampilly who still retains 40% as things stand right now.
Concept Hospitality is a management and consultancy company for hotels. They do not own and construct them but they manage and operate hotels. Some of the key hotels they manage are Seasons in Pune; they have a hotel called Wall Street in Jaipur and Manor Floatel in Delhi. All of these now goes under the management of Kamat Hotels. So that’s about 650 rooms that will come under the fold of the listed Kamat Hotels entity.
Currently the listed Kamat Hotels operates about 600 rooms. So this basically broadens the reach and makes it about 1,250 rooms on a pan India basis for Kamat Hotels. So that’s a rational behind doing it; taking and operating hotels instead of going the organic way they have actually taken over rooms as managed by consultancy firm at a fairly reasonable amount. The deal size is not known as it’s a privately listed company.
Source: Money Control