SAMHI Hotels to buy 70pc stake in RARE India for Rs 47 crore

New Delhi, Mar 6 (PTI) SAMHI Hotels on Friday said its board has approved the acquisition of 70 per cent stake in RARE India -- a platform of heritage hotels, retreats and experiential stays -- for a sum of Rs 47 crore.

In parallel, SAMHI and RARE have entered into an agreement for an affiliation with Marriott International, whereby RARE would have exclusive rights to operate its portfolio of hotels under the Outdoor Collection brand by Marriott Bonvoy across India, Nepal, Bhutan and Sri Lanka, giving it access to Marriott's global distribution channels.

SAMHI expects to enter into definitive agreements with Marriott after the acquisition is complete.

"SAMHI's commitment is expected to be Rs 470 mn (47 crore) which includes primary infusion in RARE India and a small part towards part purchase of shares from existing holders. The primary capital contribution will be deployed towards creating value through strengthening management capabilities, technology and distribution upgrades, and expanding marketing and brand reach to support RARE's next phase of growth," it said in a statement.

RARE will continue to be operated independently by its Founder and team. This partnership allows SAMHI to go beyond borders and expands its portfolio to about 100 hotels in a combination of assets under ownership and affiliation model, it stated.

RARE India has a portfolio of 67 hotels with 990 rooms with a presence across more than 15 states in India and international presence in Nepal and Bhutan.

Ashish Jakhanwala, Chairman & Managing Director, SAMHI Hotels Ltd, said: "With a strong proven founding team, an irreplaceable community of owners and the proposed affiliation with Marriott, we believe RARE can emerge as a leading B2C brand in experience-led tourism".

Rajeev Menon, President, Asia Pacific excluding China, Marriott International shared: "Through this collaboration, we look forward to extending our global distribution platform and Marriott Bonvoy ecosystem to a highly curated collection of unique stays". PTI RSN RSN DR DR DR