DLF takes inorganic route for global hotel foray, buys the luxury Amanresorts

In a takeover, which would clearly signify the intentions of DLF and its plans in the hospitality business, India’s largest real estate developer has bagged the Singapore based luxury hotel chain, Amanresorts.

Amanresorts has a unique portfolio as it owns 18 luxury resorts worldwide but each of them are small in size and have a beautiful location coupled with exclusivity. In the latest Zagat Survey, the group was ranked number one in the category of World’s Top Hotels, Resorts and Spas.

The deal has been reportedly struck for $250million (around Rs.1000 crore). Along with this DLF will also assume debt of $220 million which would be paid off from the future revenues of Aman resorts.

In India, Amaresorts has 2 properties in Rajasthan while the third one is coming up in Delhi at Lodhi Road. The latter property was bought from ITDC and is now being built as a super luxury resort and would have the most expensive room tariff in India.

Amanresorts caters primarily to the rich and famous as it has an exclusivity of its own. Post takeover, the brand name Aman would continue to exist while its current majority shareholder and founder would exit the company.

The deal would transform DLF into a company with a wider portfolio, it would also help it to compete against other Indian luxury hotel chains such as Oberoi, Taj and ITC. via