DLF to buy aman resorts
November 28, 2007
Realty major DLF announced on Tuesday that it is buying a controling stake in luxury hotel chain Aman Resorts, which has an enterprise value of $400 million. According to a company source, initially, DLF will pay $200 million to be an equal partner in the company. But, over a period of time, DLF will pay the entire enterprise value of $400 million to acquire the company. A statement issued by DLF says “the transaction when completed is estimated to be valued at $400 million”. This means over a period of time, DLF will acquire a 100% stake in the company. The deal also adds Delhi‘s Lodhi Hotel in DLF’s kitty and marks the entry of DLF into the luxury hospitality segment. Delhi-based DLF has also inked a separate JV with the Hilton group to set up business hotels across the country — a segment different from where Aman operates. The group has recently tied up with the most luxurious hotel chain in the world “Four Seasons” to run a super delux hotel in Gurgaon. Under the terms of agreement between DLF and Aman, the properties operated by the latter will continue to use the banner of Aman Resorts — a name familiar to high-end travellers across the world. DLF’s role will be that of a strategic partner that will fund expansion plans based on properties that Aman Resorts identifies. Founder and chairman of Aman resorts Adrian Zecha in a statement said, “With the financial backing of DLF, Aman Resorts will now have the resources to significantly scale up its development plans.” A spokesperson for Aman Resorts in a release said at $778, the company earns the highest average daily rates per room. Roughly 34% of Aman patrons originate from Europe, another 34% from Asia Pacific and 28% from the Americas. For India, DLF has plans to build over 100 hotels with 25,000 rooms spread over 70 cities by 2010. The group has already identified around 40 plots suitable for the hotel development in various cities like Delhi, Mumbai, Chennai, Kolkata, Banglore, Hyderabad, Pune, Chandigarh, Amritsar and Ludhiana. In Mumbai, the group will build a hotel at Mahalaxmi. Here it would also develop super premium residential apartments. The group is also planning to develop a super deluxe five star hotel and an ultra-premium residential condominium on its 23 acre plot at Chanakyapuri in South Delhi.