Varun Group acquires Taj Gateway Hotel

The deal signed at ₹120 crore, says Prabhu Kishore

Published - October 05, 2018 12:49 am IST - VISAKHAPATNAM

Major takeover:  IHCL will continue to manage  the Taj Gateway Hotel for Varun Group.

Major takeover: IHCL will continue to manage the Taj Gateway Hotel for Varun Group.

The Varun Group has acquired the Taj Gateway Hotel on the Beach Road from Oriental Hotels Limited, a subsidiary of the Indian Hotels Company Limited (IHCL), at a price of ₹120 crore.

Announcing the acquisition at a media conference here on Thursday, Varun Group chairman V. Prabhu Kishore said, “We are happy to buy the Taj Gateway, one of the leading hotels in the city. The IHCL will continue to manage the Taj Gateway for us. We look forward to a long and fruitful relationship.”

According to Mr. Kishore, Varun Group, which had started its journey in the automobile sector as a dealer of Maruti cars, has come a long way. It opened its first five-star hotel on the Beach Road (Varun Beach Novotel) in 2011 and a beach resort at Bhimli in 2016.

New project

“We are constructing a five-star hotel in Vijayawada which will be ready by November or December this year. We have ambitious plans for the prime property on the Beach Road and we will try to make it a hot tourist destination,” he said.

Varun Beach Novotel, the Taj Gateway, the Bhimli resort and the Vijayawada hotel together will have more than 600 rooms and the group intends to take the number to 1,000 in the next few years, he added.

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