Sarovar Hotels & Resorts is in the final stages of getting on board a new strategic investor, with international hospitality chains reportedly queueing up for a stake in the domestic hotel management company.

Speaking to BusinessLine , Anil Madhok, MD & co-promoter, Sarovar Hotels, said: “We have been in talks with several hotel chains which includes the likes of France-based Lourve Hotels Group and Nepal’s Chowdhury Group. While we need a strategic investor, we will never have a 100 per cent sale but would continue to hold a minimum 26 per cent stake in the company.”

Bessemer Venture Partners and New Vernon Private Equity had picked up a 30 per cent stake in Sarovar almost a decade ago. Madhok and his partner Ajay Bakaya hold a majority stake of 60 per cent.

“Sarovar was started by the two of us and we sold a small stake of 30 per cent to PE investors but now we need strategic investors who can carry the company forward. Sarovar Hotels has a turnover of ₹600 crore and is a profitable company,” Madhok added.

There had been talks earlier with Wyndham, with the US hospitality group possibly buying out the PE investors in Sarovar. This time around, the interested investors range from PE firms to hospitality companies.

“We now have several different investors who are interested. It could be a combination of new PE investors and a new hospitality chain as well,” said Madhok.

Bessemer and New Vernon have, in fact, been looking for an exit from Sarovar, but valuation has been an issue.

“While the existing investors have never been pushed to exit, it has been 10 years and they may look at a possibility of getting out. We are seeking a valuation of ₹400 crore today and expect a strategic partner to bring in ₹200-300 crore,” added Madhok.

With 75 properties, Sarovar has expanded into Africa, with brands such as Portico, Premier and Hometel.

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