Mahindra Holidays & Resorts India (MHRIL) on Thursday said it has acquired a 60-room river-side resort in Manali as part of its expansion plan for an estimated Rs 43-45 crore. This is the company's second property in Manali.
As per the deal, the vacation ownership company, which runs time-share holidays under the Club Mahindra brand, has acquired 100% equity share capital of Competent Hotels (CHPL), according to a filing by the company on the Bombay Stock Exchange (BSE).
Arun Nanda, chairman, MHRIL, told dna, "We usually add inventory through building our resorts, purchasing properties or by leasing properties. This acquisition is part of our capacity expansion plan of adding around 500-600 rooms. This particular 60-room resort has additional available land which we can use to ramp up the capacity, once we have the necessary approvals. Manali is a great location and we look forward to add more capacities in the northern India."
Part of the $16.5 billion Mahindra group, MHRIL, during its March quarter earnings call last month, said that it will invest Rs 500 crore towards capacity expansion over the next 18 months. The capital expenditure will largely involve adding new inventory to its existing portfolio of 2,400 and taking the total count to about 3,000 rooms by 2015-end.
The new room additions will be made through a combination of expanding existing resorts and adding new properties to its domestic portfolio. With this recent acquisition in Manali, MHRIL now has a total of 41 resorts in India and abroad with 170,722 vacation ownership members as on March 31, 2014.
The company's resort footprint in northern India now includes Corbett, Naukuchiatal (near Nainital), Binsar, Manali, Dharamshala, Mashobra (Shimla), Kanatal (near Mussoorie), Kandaghat (near Shimla) and Mussoorie.
"This acquisition is part of our strategy to increase our resort footprint and offer our members a variety of experiences in diverse locations, including hill stations, deserts, jungles and beaches," Nanda added.