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Hotel Management Company Investment Opportunity in Mumbai, India

Leading hotel management company in India managing a chain of 80+ hotels.
This transaction has concluded.

Established 10-20 year(s)
Employees 100 - 500
Legal Entity Private Limited Company
Reported Sales USD 3 million
Run Rate Sales USD 3.6 million
EBITDA Margin 30 %
Industries Hotel Management
Locations  Mumbai
Local Time 6:22 AM Asia / Kolkata
Listed By Management Member
Status Active
Overall Rating
Partial Stake Sale
USD 3 million for 10.0% stake (Native Currency: INR 250,000,000)
Reason: The management team has the skillset and experience turning around poorly performing hotels and runn... View More
Includes physical assets worth USD 1.6 million
Documents
Business Overview

- Operate a network of 80+ hotels with 4,300+ rooms across India under our own brand.

- The hotels we manage fall under the upscale / midscale segment.

- Sign 15-year management contracts with the hotels we manage.

- Currently have 105 hotel contracts signed of which we operate 82 with the operations for the remaining hotels expected to begin in the next few months.

- Charge the hotel owners in our network a management fee of 6% of the total revenue.

- The hotels we manage have a cumulative annual revenue of INR 450 crores.

- The hotel owners maintain the premises and are responsible for the payroll.

- We manage operations and marketing functions.

- Our management team has won over 200 awards.

- Pre-pandemic, our revenue consistently grew by 20% every year.

- Pre-pandemic the hotels under our management had an occupancy rate of 70% but that has now reduced to 56%

- In order to boost our revenue and expand margins, the firm intends to begin acquiring hotels which would allow it to then receive 100% of the revenue.

- Intend to raise capital to acquire distressed hotel properties which our management believes we can turnaround drawing upon our experience.

Products & Services Overview

Hotel management services.

Assets Overview

Office space in Mumbai, management contracts with 105 hotels across India, a deposit of INR 2 crores for the acquisition of one hotel, vehicles, computers, and office furniture.

Facilities Overview

5,500 sq. ft. owned office space in Mumbai.

Capitalization Overview
Not Disclosed
Recent Activity
  • Earlier than 15 days
    Director, Ahmedabad, Financial Consultant connected with the Business
  • Earlier than 15 days
    Managing Director, Delhi, Financial Consultant connected with the Business
  • Earlier than 15 days
    Managing Director, Mumbai, Financial Consultant connected with the Business
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This transaction has concluded. View similar business opportunities on SMERGERS
Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.

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