Accor, the largest international hotel operator in Asia-Pacific, announced today that it has sold a 60% stake in 15 wholly-owned Formule 1 hotel projects in India, to private equity firm, SAMHI, for an undisclosed sum.
The economy brand Formule 1, which has two operational hotels in India presently, will see the changed approach of the group as it now follows the “asset-light” strategy.
Formule 1 competes with the Ginger brand from Roots Corporation, which is a 100% subsidiary of Indian Hotels Company (IHCL). Room per night charges of Formule 1 start from Rs 2,112 (Greater Noida).
Following the deal, Accor will maintain a 40% stake in the hotels and will continue to operate them under long-term operating agreements. "Accor will retain the rights to own and/or develop further Formule 1 projects in India", the European company is a statement.
Today, Accor has 15 wholly-owned and leased developments under the Formule 1 brand of hotels in India. Of these, the first two hotels have opened in Greater Noida and Ahmedabad with a further hotel opening scheduled in Pune's Hinjewadi area by the end of this year.
SAMHI is a Indian hotel investment and development firm focusing on ownership of branded hotels across key cities in the Indian sub-continent, specifically in the “value-for-money” mid-scale and economy segments.
SAMHI, whose founders include Steve Rushmore, Ashish Jakhanwala and Manav Thadani, directly and through its subsidiaries operates a mid-scale hotel in Ahmedabad with another 150 rooms hotel opening in Bangalore in mid 2013.
In addition the firm has commenced development of properties in Bangalore, Chennai and Gurgaon which comprises four hotels and more than 650 keys under development with international brands such as Courtyard and Fairfield by Marriott and Hyatt Place.