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Suba Group's Click acquires controlling stake in
leisure group1589 Hotels
Click Hotels envisions crossing 3,000 rooms and plans to have a pan India presence by 2021.
Mumbai-based Click Hotels, a part of Suba Group of Hotels, has acquired a controlling stake in Gurgaon-based
1589 Hotels for an undisclosed amount, said people privy to the deal. Mansur Mehta, MD, Suba Group, confirmed
the development. With this acquisition, the total number of hotels at the hospitality firm goes up to 50 from the
present 15 and the number of rooms goes up to 1800 from the current 400.
The transaction in the budget segment of the hotel comes at a time when quite a few hotels have shut down due to
the Coronavirus (Covid-19) pandemic and many have been put up for sale. Close to 40 percent of hotels and
restaurants are estimated to have closed permanently, according to the Federation of Hotel & Restaurant
Associations of India (FHRAI).“We are in the business segment and don’t have a presence in the leisure markets.
Going by the current trend, it seems, leisure segment will recover and grow much faster while the business
segment may take a couple of more quarters to get back to normalcy. That is why we thought it makes sense to do
this deal,” Mehta told Business Standard.
By 2023, Click Hotels envisions crossing 3,000 rooms and plans to have a pan-India presence. Mehta said he is
on the lookout for more acquisitions in the southern and western regions for the same. 1589 Hotel is a budget
hotel that owns GenX, RNB, and RNB Select brands and has 1400 rooms with a presence in the majority of the
leisure and wedding destinations in north India including Himachal, Rajasthan, and Uttar Pradesh.