The transaction is expected to add immediate scale to the businesses within India’s growing hospitality segment. Prama generated approximately USD 8.5 million in revenues from its operating entities for the year ended 31 March 2019.
Mumbai, India – Intellistay Hotels has announced a fresh round of equity infusion from Prama Hotels, which recently completed a strategic round of investment from TripBorn.
Deepak Sharma, Chief Executive Officer of TripBorn, said: “The addition of the Prama team and their rapidly scaling hotel platform is a very unique opportunity to serve India’s growing market, where over 650 million young population aged between 24 and 35 driving demand for affordable, quality, branded hotel experiences.”
Sharma added: “Our plan is to leverage the TripBorn technology platform to deliver consistent hotel guest experiences and address emerging user categories. We are optimistic that this acquisition could drive hyper revenue growth over the next several years, including the addition of new hotels.”
The transaction is expected to add immediate scale to the businesses within India’s growing hospitality segment. Prama generated approximately USD 8.5 million in revenues from its operating entities for the year ended 31 March 2019.
As part of the deal, Prama will use the infusion to drive the businesses of IntelliStay and the other group company, Apodis Foods & Brands, which provides food & beverage services to several economy hotel chains across India.
IntelliStay operates full-service hotels under three Brands: Mango Hotels, i-Stay Hotels and Apodis Collection. IntelliStay last raised an equity round in tranches from Apodis Hotels and Resorts who now holds a significant majority stake in IntelliStay Hotels. Meanwhile, Prama is the promoting company of Apodis.
Mahesh Gandhi, a promoter of Prama, said: “IntelliStay will continue to add new hotel properties under its hotel brands, as well as convert and re-flag both branded and unbranded properties.”
Since 2012, IntelliStay Hotels has signed and opened 23 hotels till March 2019. Another 30 hotels are in the pipeline with a target of over 2,500 keys operational by March 2020. This puts IntelliStay on the list of top 10 hotel companies in India by number of keys under management.
Prashanth Rao Aroor, Founder, Managing Director and CEO of IntelliStay Hotels, said: “As we have begun to accrue and grow from profits, Prama capitalising IntelliStay at this time helps us ramp up faster.”
He added: “Of particular interest will be an effort to take the i-Stay Hotels brand, which is in prototype at five locations, to prime railway stations, bus transport hubs and the Indian highways, with emphasis on quality food & beverage, backed by service level assurances.”
Meanwhile, the Mango Hotels and Mango Hotels SELECT brands are to scale up as highly curated mid-scale boutique hotel brands that localize to each destination.
With current presence in Karnataka, Goa, Maharashtra, Gujarat and Rajasthan, IntelliStay Hotels are expanding to Punjab, Jammu & Kashmir, Delhi NCR, Himachal Pradesh, Uttarakhand, Uttar Pradesh, Orissa, Chhattisgarh, Madhya Pradesh, Andhra Pradesh and Tamil Nadu, with first few hotels to open this year.
Sirima is the Editor-in-Chief of TravelDailyNews Asia-Pacific, responsible for the editorial aspects of the online news portal.
