Juniper Hotels Limited has completed the acquisition of a 220-room upper upscale hotel near Bengaluru International Airport, further strengthening its presence in the rapidly expanding hospitality market of Bengaluru. The property spans 6.5 acres, with a built-up area of 41,200 square metres. Currently in its final stages of development, the hotel is set to offer a range of premium amenities, including 29,000 square feet of MICE (Meetings, Incentives, Conferences, and Exhibitions) space, specialty dining options, a fitness centre, a spa, and more.
The acquisition, valued at Rs 325 crore, was structured through a cash buyout. Juniper Hotels utilised Rs 280 crore in long-term debt for the purchase, with the remaining funds sourced from the company's existing cash reserves.
Arun Kumar Saraf, Managing Director and Chairman of Juniper Hotels Limited, commented “This is the first step in Juniper 2.0 Journey. With this value accretive acquisition, Juniper has established a presence in Bengaluru, an exciting hospitality market in India. We expect this asset to commence operations and start contributing to the portfolio by next year.”
Bengaluru's hospitality sector is experiencing robust growth, with an average room rate (ARR) increase of around 20 per cent year-over-year in FY24. This growth is bolstered by significant infrastructure projects around the Bengaluru International Airport and the expansion of the city’s IT and corporate sectors, making the area a hotspot for business and leisure travellers alike.
