Carlson Hotels to Acquire Majority Stake in Key Indian Partner
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Carlson Hotels to Acquire Majority Stake in Key Indian Partner
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Category: Asia Pacific - India - Industry economy -
Group or hotel buyout
This is a press release selected by our editorial committee and published online for free on 2010-01-14
New Integrated Organisation to Support Group's Aggressive Growth in India
Carlson Hotels Worldwide, one of the world's leading hotel companies, today announced that it has signed an agreement to increase its stake in RHW Hotel Management Services Ltd (RHW) from 13% to 87%. RHW is the hotel management and consultancy services company which has successfully managed Carlson-branded hotels in India since 1998. Carlson is acquiring the shares from Umak Investment Company Private Limited. The remaining 13% is held by private investors. The transaction is subject to government approval.
The acquisition will result in a new integrated organisation for Carlson Hotels in India, encompassing development, projects, operations, marketing and sales. The new organisation will initially have 70 employees with K.B. Kachru, Carlson Hotels' executive vice president for South Asia at the leadership helm. There are already over 5,000 employees working at Carlson branded hotels in India.
"We are very proud of what we have achieved in India to date. I would like to personally acknowledge the work done by the RHW team and our partners in the country over the last ten years. This acquisition is a natural progression for Carlson as we continue to grow in this key market," said Hubert Joly, president and CEO of Carlson.
"This transaction represents a great opportunity for our business associates. It also opens a new chapter in our long-standing relationship with Carlson as we look towards new opportunities to work together," said Dr. R. Kapur, director, Umak Investment Company Private Limited.
This acquisition comes at a time of significant growth for Carlson Hotels in India. The company today also announced that it will be adding 50 hotels, from the current 28 hotels to 78 by the end of 2012. The new integrated organisation in India will help accelerate the future growth of Carlson Hotels in the country.
"I am very excited about the growth prospects for Carlson Hotels in India. I am confident that the new structure will help us maximize our potential, and I look forward to continue working with all who have been associated with Carlson's success so far," said K.B. Kachru.
The RHW transaction follows a similar move made by Carlson Wagonlit Travel (CWT) in 2008 when it completed the acquisition of 100% of CWT India, which had initially been established as a local joint venture. CWT is the largest travel management company in India.
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