Peerless Group is buying the 65-room Pearl Inn Hotel in Hyderabad for Rs.27 crore. The move will enable the group to make a foray into the southern region. The sale agreement has already been signed and the deal is expected to be sewn up in the next few days. Pearl Inn, which is a running hotel in Hyderabad’s Gachibowli, near Hi-Tech City, is set to be unveiled in its new avatar as ‘The Peerless Inn, Hyderabad’ in the first week of October, if things go according to plan.
“Bookings are now beginning” an executive with knowledge of the developments said. The deal was sealed at Rs.27 crore and Peerless Hotels (a subsidiary of the Peerless Group) considered it a bargain buy at a time when the chips are down for many a hospitality company. The funding for the deal is through a rights issue by Peerless Hotels to its parent company Peerless General Finance & Investment Co.
“It is a well-appointed property on around an acre, located amidst a business centre,” the executive said. Of the 90 employees, around 70 are expected to be absorbed by Peerless, it was learnt. The hotel was being run by an operator.
Peerless Hotels presently runs a 168-key hotel here and a 50-room hotel in Port Blair, besides two properties in Durgapur and Mukutmanipur (in Paschim Medinipur). The last two are through a subsidiary. With an occupancy ranging between 65 and 80 per cent, the group is now looking to expand its footprints mainly to Tier-I and Tier-II cities.
There are now seven companies in the group of which two reported losses in 2014-15.
