Private equity players are making the best of the market opportunity as action picks up in the Indian hospitality space.
In a recent deal, Kotak Realty Fund has exited Lemon Tree Hotels, a Warbug Pincus-backed hospitality chain, reports DNA.
In another deal, investors in Sarovar Hotels – Bessemer Venture Partners Trust and New Vernon Private Equity – are working out exit modalities.
When contacted by dna, Patu Keswani, chairman and managing director, Lemon Tree Hotels, replied in a text message saying, “I don’t have any comments to offer.”
However, a spokesperson from the PE firm confirmed the development in an email reply: “Kotak Realty Fund has successfully exited its investment in Lemon Tree Hotels.” The spokesperson did not share details about who bought their stake in the hospitality chain and whether the PE firm was able to make a decent return on this investment.
Kotak Realty had taken position in Lemon Tree Hotels and Red Fox Hotels (both promoted by Patu Keswani) in 2006 by investing Rs 32 crore and Rs 2 crore, respectively.