Hospitality firm Suba Group said on Wednesday it has bought 35 properties of leisure budget hospitality chain 1589 Hotels, as part of its plan to expand nationally.
The move to buy luxurious resort GenX, business hotel RNB, and RNB Select by Clicks Hotels marks one of the biggest deals in the budget hotel segment.
The company did not disclose the financial details of the deal.
The new-age mid-segment hotel chain said it will now directly manage 50 prime properties across India, the UAE, and Nepal.
“The majority of our acquired properties cater to the leisure segment and perfectly complement our existing portfolio of business hotels,” Mansur Mehta, managing director of Suba Group of Hotels, said.
The acquisition has expanded its footprint across key tourist destinations including Ranthambore National Park, Jim Corbett National Park and enabled it to fast-track its growth across South Asia, the Mumbai-based firm said.
“By 2023, Click Hotels by Suba targets to cross 3,000 plus rooms while expanding its presence from regional to the national level,” the hotel chain said.
Owned and run by Clarks Group of Hotels, 1589 Hotels was set up as a separate division under which hotel and resort properties were run on a management contract basis. The hospitality chain has a dominant presence in destinations such as Lucknow, Haldwani, Varanasi, Bhavnagar, Dalhousie, Ranthambore and Jim Corbett, among others.
In 2015, Suba Group of Hotels diversified into two brands, Suba Hotels, which is a 3- and 4-star hotel group, and Click Hotels, a new-age budget hotel group. The brands have 15 hotels and 720 rooms across 11 destinations across India and the UAE.
Nandivardhan Jain, CEO of NOESIS Capital Advisors, acted as an exclusive advisor on the transaction.