Vikram Aggarwal is in advanced stages of acquiring a three-star Clarion Hotel in Chennai in a deal estimated to be valued at approximately Rs 180 crore, two people familiar with the matter said.
The Clarion Hotel President, situated on Radhakrishnan Salai Road near the city centre and Marina Beach, has 129 rooms.
“The acquisition involves the purchase of a stressed asset from one of the top banks in the industry,” one of them said.
VVA Hotels Pvt Ltd, a prominent hospitality firm led by Aggarwal, confirmed that it was in the process of acquiring the property but declined to comment on the size of the deal.
It currently manages two upscale hotel properties in Chennai – Fortune Select Palms, a business hotel with 129 rooms in the IT corridor of suburban Chennai, and Radisson Blu, a five-star hotel in the city.
The hospitality industry witnessed hotel transactions worth Rs 3,290 crore in 2023, as per data shared by JLL Hotels & Hospitality Group.
Nihat Ercan, CEO of APAC at JLL Hotels & Hospitality Group, told ET last year that India should see a year-on-year increase in hotel investments this year.
The Indian hospitality sector continued to experience year-on-year growth in performance in the quarter ended December, driven primarily by a substantial increase in the average daily rate (ADR) of 14.6%, compared with a year earlier, according to JLL’s Hotel Momentum India (HMI) Q4 2023 report.
As per JLL, the momentum from the last quarter is expected to carry forward into 2024, supported by the wedding industry, corporate and social MICE demand, and the growing significance of religious tourism.
Business travel is also anticipated to rebound by the end of the first quarter of 2024 as companies hold their year-end meetings.