Lemon Tree Hotels to acquire 100% stake in Keys Hotels
Lemon Tree Hotels has signed a non-binding term sheet with Mauritius-incorporated Berggruen Hotels and Berggruen Investments, that builds and operates hotels under the Keys brand, to acquire a 100 percent stake in Keys Hotels in India.
Lemon Tree shares spiked on news of the deal, but could not hold on to gains for long.
-Los Angeles-based venture capital firm Berggruen Holding is the owner of Berggruen Hotels which was formed in 2006 to own and operate the Keys Hotels brand.
-The current term sheet is a non-binding agreement and the actual transaction is expected to be completed only after proper due diligence.
-Keys Hotels portfolio includes 21 owned/managed hotels with 1,911 rooms in 19 cities in India. The company also owns two land parcels for hotel development in Goa and Raipur.
-The company operates three brands, Keys Prima Hotels, Select Hotels, and Lite Hotels to cater to the midscale and economy hotel segments.
-Keys Hotels had been looking for buyers and there were reports in February this year about OYO’s interest to acquire the company.
– Keys has seen a spate of senior-level exits in the last 2-3 years.
-As per reports, Keys has around Rs 160 crore estimated debt on its balance sheet currently while Lemon Tree had a debt of around Rs 1,050 crore as on September 30, 2018.
-With the finalisation of the acquisition, Lemon Tree will expand its operating portfolio to 75 Hotels with 7,322 rooms in 44 cities in India
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