Andheri’s Hotel Aura Grande acquired by Bangaluru based MRG Group

Andheri’s Hotel – Aura Grande

Deal space in the hospitality sector is picking up in 2015 with alleviation of valuations and improved market conditions drawing buyers back to the bazaar after nearly two years.

In the most recent development, MRG Hospitality and Infrastructure, the owner of a chain of boutique hotels under the ‘Goldfinch’ brand, has acquired Aura Grande, a four-star business hotel for Rs 100 crore. The 94-room hotel is located in Andheri, a suburb of Mumbai. K Prakash Shetty, chairman and managing director, MRG Group confirmed that his company has acquired 100% stake in Mumbai-based Annakoot Properties which owns the Aura Grande hotel.

“We have funded this acquisition through a mix of debt and equity.” MRG will invest additional Rs 10 crore in revamping the seven-year old property. We wanted a presence in northern and southern part of Mumbai and this acquisition will launch our presence in the northern part,” said Shetty. “We are also exploring opportunities in Navi Mumbai,” he added.

“It’s encouraging to see that deals are back in the market and investors with long-term view for play in the hospitality industry are getting active in the market,” said Abhijit Umathe, associate director for hospitality and leisure,  Knight Frank India.

MRG Group which is currently operating four boutique hotels in Bangaluru and Mangalore under the brand name ‘Goldfinch’ and 15 restaurants, is looking to expand its portfolio to 12 properties with around 2,300 rooms in the next three years. The company which has interests ranging from real estate to hospitality has entered into contracts with international chain Hilton Worldwide and Marriot for developing their hotel properties in Goa & Bangaluru respectively. “We wish to grow the ‘Goldfinch’ brand to markets like Puducherry, Coorg, Chikmanglur and Udupi where we have already acquired land parcels for hotel projects,” Shetty stated.