Bengaluru-based hospitality company Ferns Estates has expanded its presence in the Indian hotel sector with the acquisition of a 75-room luxury hotel in Goa for Rs1.75bn ($21m).
The transaction also includes a two-acre plot for the development of an additional 75 suites, indicating the company’s anticipation of strong demand for luxury accommodations.
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Ferns Estates, which operates under the Rosetta Resorts and Holiday Homes brand, has secured an Rs1.50bn project loan from Bajaj Finance for ten years to fund this acquisition.
Rosetta Resorts and Holiday Homes chairman and managing director Errol Fernandes expressed optimism about the deal, stating, “This move is expected to boost the company’s profitability in the long term.”
The company has ambitious plans to expand its resort portfolio by adding around 1,000 rooms over the next three to five years, with potential properties already identified in various locations.
This strategic expansion is aimed at increasing the company’s capacity to cater to a wider range of travellers and to strengthen its market position.
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By GlobalDataFernandes highlighted the importance of acquiring lease and company-owned properties to enrich the asset portfolio.
Since entering the hospitality sector in 2018, Ferns Estates announced plans to invest Rs7bn over the following three years to construct five resorts in Karnataka and Tamil Nadu.
A leading tourism destination in India, Goa is known for its sandy beaches, places of worship, vibrant nightlife, and World Heritage-listed architecture.
The state has seen a significant influx of visitors, with government officials reporting ten million tourists from March to December of the previous year.
In a related development, Indian Hotels Company subsidiary Roots Corporation announced plans earlier this year to open a new Ginger hotel near Manohar International Airport in Goa, having signed a 60-year sub-licence agreement with GMR Goa International Airport.
