Sequoia buys into Sayaji Hotels

MUMBAI: Sayaji Hotels, which owns a hotel each in Indore and Baroda and operates the restaurant chain Barbeque Nation, has caught the fancy of US-based venture capital firm Sequoia.

According to an announcement on the exchanges, Ruane Cunniff & Goldfard has acquired a 5.41% stake in Sayaji Hotels through the secondary market. Apparently, this is a Sequoia-promoted fund. Sources indicated Sequoia could take the stake up to 10%. “We are speaking to various players, but it’s too early to comment,” said Sajid R Dhanani, managing director of Sayaji Hotels.

While Sayaji is constructing a new hotel in Pune, its subsidiary Sanchi Hotels which runs the Barbeque Nation chain is also in an expansion mode, hoping to have 49 restaurants by the end of FY09. Sources also said that Sanchi Hotels could be spun out into a separate entity, with 10% to vest with employees, 10% with the promoters and the remaining 80% with parent Sayaji. A part of this 80% could then be divested in favour of PE investors.

sanat_vallikappen@dnaindia.net