Bloom Hotel Group Acquires Hotel Asian International in NDMC Re-Auction

Date: June 2018

Location: New Delhi, India

Name: Hotel Asian International – 3 star

No. of Keys: 38

Seller: New Delhi Municipal Council – NDMC

New Owner: Samena Capital-backed Bloom Hotel Group won the auction for Delhi’s erstwhile Hotel Asian International, located on 1 Janpath Lane.

Bloom Hotels, which is part of Imperativ Hospitality, offered to pay the higher of 39.50% of the gross turnover or Rs 1.1928 crore per annum for 33 years to beat Indian Hotels Company Ltd and Byke Hospitality in the auction conducted by New Delhi Municipal Council.

IHCL, which on Wednesday won the auction for Hotel Connaught, had submitted bids for all three hotels that NDMC had put up for sale, including the Taj on the Mansingh Road.

The forward e-auction for the 38-room hotel, previously known as Hotel Asian International, started at 36% of the gross turnover and concluded at 39.50%. NDMC said the licence fee of the public property, situated adjacent to Hotel Royal Plaza on Ashoka Road, will help it finance public projects.

SBI Caps is the transaction adviser for all the three hotel auctions.

“We are pleased to partner with what is widely considered India’s best-run municipal department. Central Delhi has limited accommodation for the value conscious traveller and with this hotel we aim to provide world class product to guests — both domestic and international,” said Sanjeev Sethi, chief operating officer of Bloom.

In April this year, Samena Capital had picked up a 35% stake in Bloom Hotels for Rs 100 crore in a series B investment round.

THPT Comment: Slightly odd pairing! this 38 rooms hotel and Blooms, a seriously aspirational hotel company…

Mid-market brand Bloom Hotels has properties in Gurgaon, Goa and Bengaluru and this will be its fourth hotel in Delhi. It plans to set up an additional 100 hotels across South Asia over the next five years.

Bloom Hotel Group runs two categories of hotels: Bloom Suites and Bloom Rooms. The brand is considering expanding its presence to locations like Ahmedabad, Pune and Kochi.

IHCL that won the bid for Hotel Connaught earlier and said its location would aptly fit its new SeleQtions brand.

After the Taj Mansingh auction got annulled due to lack of interest from other entities, NDMC has kept July 18 as the new date for its e-auction on existing terms and conditions.

First Seen: Economic Times of India