Yatra Capital Invests $7 Million In Kolkata

Yatra Capital Ltd, a real estate company listed on Euronext, has made a strategic investment of $7 million to acquire a 40% stake in Jalan Intercontinental Hotels Pvt Ltd. This venture involves the development of a new business hotel in Kolkata, boasting 200 rooms, which will be managed by Indian Hotel Ltd under the prestigious Taj Gateway brand.

The planned hotel will sit on a 1.9-acre site at the intersection of Rashbehari Connector and EM Bypass in Kolkata. The EM Bypass serves as a vital transportation route linking the old and new segments of the city, connecting Kolkata Airport with the eastern parts. The hotel is strategically positioned to serve the needs of IT and ITES companies situated near the upcoming IT parks and SEZs in the vicinity.

Currently, Kolkata hosts around 1,500 rooms in the premium hotel category. Recent data indicates a consistent rise in occupancy rates, averaging 15-18% increase in the past few years, with the annual occupancy rate around 80%. This trend is projected to persist in the medium term, whereby business travelers comprise approximately 60-70% of guests in premium hotels.

This marks Yatra Capital's 14th investment in India, including two other ventures in the hospitality sector. Notably, Yatra Capital had earlier invested Rs 63.44 crore for a 30% share in Platinum Hospitality Services, which plans to develop a hotel in Bangalore at an anticipated cost of Rs 402.62 crore. Additionally, in 2007, Yatra Capital acquired Eredene Capital Mauritius, one of the first India-focused property funds, for Rs 99.39 crore.

Ajoy Veer Kapoor, Managing Director of Saffron Asset Advisors Private Ltd, remarked, "This is Yatra’s third hospitality project and is in line with our commitment to building a strong, diversified portfolio of quality assets. Our investments for Yatra have the potential to deliver across a variety of sectors and locations and we will continue to seek opportunities that will maximize shareholder returns."