Investment bank Credit Suisse is picking up a 15 per cent stake in Apeejay group’s Park Hotels. The deal is estimated at Rs 201.35 crore ($50 million), according to sources close to the development.
The announcement is expected on Monday. Vijay Dewan, Managing Director, Park Hotels was unavailable for comment on Saturday over e-mail.
Park Hotels plans to build eight new hotels and create a pan-India presence with the infusion of capital, according to sources in the company.
The expansion, to be the largest for Park Hotels, is aimed at catapulting the company into the top five in the country. Credit Suisse was reported in Januray to be raising close to $1 billion (Rs 4,000 crore) to invest in the real estate sector in the country.
A subsidiary of the Apeejay Surrendra Group, Park Hotels is promoted by the Pauls, and has its headquarters in Kolkata.
The chain has properties in Bangalore, Chennai, New Delhi, Mumbai, Kolkata, and Visakhapatnam. The group’s latest acquisition is an 80-room business-cum-leisure hotel in Navi Mumbai this February.
The Apeejay Surrendra group was established in 1910, with its foundation in steel. Today, the group employs close to 42,000 people in rapidly expanding operations in tea, hospitality, shipping, real estate and retailing, and financial services.