ITCHOTELSBSEITC HOTELS LIMITEDLowNeutral
Announced Thu, 16 Jul · 15:02 IST

ITC Hotels acquires 100 percent stake in Welcomhotel Ahmedabad for Rs 155 cr

ITCHOTELS · price

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₹183.73
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AI summary

ITC Hotels has signed a definitive agreement to acquire 100 percent stake in GHK Hospitality and Infrastructures, which owns the 130 room Welcomhotel Ahmedabad on Ashram Road. Deal value is Rs 155 crores on a debt-free, cash-free basis. The hotel was already operated by ITC Hotels under a management contract and will now become an owned asset. Deal expected to close in the current quarter and is expected to be EPS accretive in the first full year of operations post acquisition.

Likely market impact

Converts a managed hotel into an owned asset in a fast growing commercial hub. Management says the deal is EPS accretive, which is positive for shareholders.