Chalet Hotels inks pact to acquire Belaire Hotels for enterprise value of Rs 290 crore

Chalet Hotels on Saturday said it has signed a share purchase agreement (SPA) to acquire Belaire Hotels Pvt Ltd -- owner of Novotel Hotel in Pune -- and its affilate entity SHPL for an aggregate enterprise value of around Rs 290 crore.

The completion of the transaction is subject to fulfillment of certain conditions precedent as agreed in the SPA, Chalet Hotels said in a filing to the BSE.

The Novotel hotel is operated by AAPC India Hotel Management Pvt Ltd (part of Accor Group) under a management agreement, it added

With this new relationship, Chalet marks the beginning of its tie-up with Accor, one of the largest global hospitality players with significant presence in India with key brands such as Fairmont, Sofitel, Novotel and ibis amongst others, Chalet Hotels said.

Commenting on the development, Chalet Hotels MD and CEO Sanjay Sethi said, "This move is in line with our growth strategy of strengthening and expanding our portfolio to new geographies with strong demand potential."

The company believes that Pune is an attractive market and has sizeable commercial office development, resulting in strong hotel demand dynamics, he added.

"We look forward to working with the very capable management team of Accor to turn around this hotel through capacity enhancement and aggressive growth in market share," Sethi said.