Ending the year 2010 on a high note, Sahara India Pariwar on Thursday said it has acquired the iconic Grosvenor House hotel in London for 470 million pounds (around Rs 3,250 crore), which will give it a toehold in the global hospitality business.
Sahara bought the hotel, located at Park Lane in Mayfair, London, having 420 rooms, 74 suites, 27 meeting rooms, from the Royal Bank of Scotland (RBS).
"The valuation of the hotel, three years back was more than one billion pounds. The valuation, even today is quite high but due to highly satisfactory due diligence by the RBS who owned the property and after long and strict negotiations, we have purchased it for 470 million pounds," Sahara Group Chairman Subrata Roy said in a statement.
The acquisition that marks Sahara's entry into international hospitality market, will also enable the company to launch other business ventures outside India.
"This acquisition is a part of the major expansion plans of the group. In addition to the acquisition of Grosvenor House, London will be the gateway for Sahara to introduce some of its new business ventures, internationally," Roy said.
Sahara has plans to make additions to the property including new restaurants, bar, night club, business centre, swimming pool and spa.
The hotel is currently being managed by international hospitality brand Marriott and was refurbished by Royal Bank of Scotland two years back.
Going ahead, the property will be owned by Sahara Group company Aamby Valley Ltd.
The acquisition was brokered by Richard Lewczynski of Blandford Goldsmith, the statement added.
Sahara Group has businesses in hospitality, real estate financial services, mutual funds, life insurance, media, film production, sports, information technology, healthcare, commodity sales and services and consumer products.
In India the company has two projects in the hospitality sector--Hotel Sahara Star and Aamby Valley City.
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