This BSE smallcap realty stock rose 18% on collaborating with Indian Hotels

Hampton Sky Realty, a BSE- listed smallcap company, shares zoomed 18.6 per cent in trade, logging an intraday high at Rs 33.1 per share on BSE. The stock gained after the company entered into a Hotel Management Agreement (HMA) and a Technical Services Agreement (TSA) with Indian Hotels Company (IHCL) and an Agreement to Lease (ATL) with Roots Corporation Limited (RCL), a subsidiary of IHCL. 

 

Around 11:54 AM, Hampton Sky Realty Ltd share price was up 16.64 per cent at Rs 32.53 per share on BSE. In comparison, the BSE Sensex was down 0.49 per cent at 80,287.28. The market capitalisation of the company stood at Rs 892 crore. The 52-week high of the stock was at Rs 55.50 per share and the 52-week low was at Rs 22.40 per share. 

 

"Hampton and IHCL have entered into a Hotel Management Agreement (HMA) and Technical Services Agreement (TSA) (together referred to as the Gateway Agreements)," the filing read.

 

Under the contract, Hampton will construct a property, either directly or through a special purpose vehicle, at a land owned by Hampton at Mangli Nichhi, Ludhiana Chandigarh Highway, Punjab. 

 

The proposed property will house a fully customised and equipped hotel and will be operated by IHCL under its brand “Gateway”.

 

"Hampton has also entered into an agreement to lease (ATL) with Roots Corporation Limited (RCL), a subsidiary of IHCL," the filing added. 

 

Under the agreement, Hampton will construct and develop a separate property on the abovementioned land of Hampton. Upon completion of construction, the property will be granted on lease to RCL by way of a separate lease deed, for the latter’s use as a hotel under “Ginger” brand. 

 

Hampton Sky Realty is a real estate development company specialising in commercial and residential properties. 

 

The Indian Hotels Company Limited, a part of the Tata Group, is India’s premier hospitality brand, with a portfolio of iconic hotels under its Taj, Gateway and Ginger brands.

 

Roots Corporation, a subsidiary of The Indian Hotels Company Limited, was incorporated under the provisions of the Companies Act, 1956. Based in Mumbai, RCL is responsible for the operations and expansion of the Ginger Hotels brand in India. 

 

In the past one year, Hampton Sky Realty shares have lost 43.4 per cent against Sensex's rise of 13 per cent.