CCI clears merger of InterGlobe Hotels and Accor-linked entities

The transaction is aimed at consolidating the ownership and operations of Accor-branded hotel assets under a single corporate structure.

The Competition Commission of India (CCI) has approved a proposed corporate restructuring involving InterGlobe Hotels Private Limited (IGH) and several hotel companies jointly owned by the Bhatia Family Group and the Accor Group. The approval clears the way for multiple share acquisitions and the merger of several entities into IGH.

The transaction is aimed at consolidating the ownership and operations of Accor-branded hotel assets under a single corporate structure.

Multiple hotel companies to merge into IGH

According to the CCI, the approved combination includes the merger of AAPC India Hotel Management Private Limited (AAPC India), Caddie Hotels Private Limited, Triguna Hospitality Ventures (India) Private Limited, Srilanand Mansions Private Limited (SMPL), Techpark Hotels Private Limited and Accent Hotels Private Limited into InterGlobe Hotels Private Limited.

The restructuring also involves related share acquisition transactions that form part of the overall combination.

Joint venture between InterGlobe and Accor

InterGlobe Enterprises Private Limited, the investment holding company of the Bhatia Family, and Accor Group have jointly developed several hospitality businesses in India over the years.

InterGlobe Enterprises is wholly owned and controlled by the Bhatia Family, while AAPC Singapore Pte. Ltd. is a wholly owned subsidiary of Accor S.A., the French hospitality major and the parent company of the Accor Group.

IGH, AAPC India, Triguna and Caddie are jointly owned and controlled by the Bhatia Family Group and the Accor Group.

Businesses covered under the merger

InterGlobe Hotels currently owns and develops Accor-branded hotels that are managed by AAPC India. It also leases office and commercial spaces and provides consultancy and support services within the group.

AAPC India manages and franchises Accor-branded hotels across India while also offering consultancy services for the brand's hotel operations.

Caddie Hotels owns and develops Accor-branded hotel properties managed by AAPC India and also leases an office tower located within a hotel property in Delhi.

Triguna functions as an investment holding company. Its wholly owned subsidiaries—Srilanand Mansions, Techpark Hotels and Accent Hotels—are engaged in owning and developing Accor-branded hotels.

Consolidation of hospitality assets

With the CCI's approval, the proposed merger will bring these hotel-owning and management entities under InterGlobe Hotels Private Limited, simplifying the group's corporate structure while consolidating its portfolio of Accor-branded hospitality assets in India.

The approval relates to the competition law aspects of the transaction and enables the companies to proceed with the proposed restructuring, subject to any other applicable regulatory or statutory requirements.