Target Information

The Indian Hotels Company Limited (IHCL), the largest hospitality enterprise in South Asia, has announced the signing of a new Vivanta branded hotel in Gorakhpur, Uttar Pradesh. This hotel will be managed by IHCL under a partnership with AD Estate Developers, marking a significant entry into the city’s growing hospitality market.

Vivanta Gorakhpur is part of a larger mixed-use development and will feature 110 guest rooms, a variety of multi-cuisine restaurants, recreational facilities, and modern meeting spaces. The establishment is anticipated to commence operations in 2022, enhancing the lodging options available in Gorakhpur.

Industry Overview in Uttar Pradesh

Uttar Pradesh, being India's most populous state, sees a burgeoning demand for hospitality services, particularly in emerging cities like Gorakhpur. Despite its historical significance and growing tourism, the city has been underrepresented in the upscale hospitality segment. With increased domestic and international tourism, the region is positioned for a hospitality boom, especially at the midscale and upscale levels.

The government has recognized this potential and is investing in infrastructure to boost connectivity and tourism. Notably, Gorakhpur's proximity to the Nepal border and its status as a religious site drawing visitors enhances its appeal as a destination. The introduction of quality hospitality options is crucial for accommodating the increasing influx of tourists and business travelers.

The mixed-use development trend in India has gained traction, promoting a holistic approach to urban living and hospitality, thereby creating integrated solutions that benefit both commercial and leisure travelers. This evolution signifies a shift in the hospitality landscape, further motivating companies like IHCL to expand into untapped markets.

Rationale Behind the Deal

The partnership between IHCL and AD Estate Developers reflects a strategic move to leverage Gorakhpur's emerging market potential. With the hospitality sector in its early stages here, IHCL aims to gain an early advantage in capturing the growing lodging demand. This strategic placement not only strengthens IHCL’s footprint in the state but also aligns with its goal of expanding its upscale brand presence amid evolving consumer preferences.

Furthermore, the decision to introduce the Vivanta brand in Gorakhpur signifies confidence in the city’s future growth trajectory, considering its increasing economic activities and tourism influx.

Investor Information

AD Estate Developers is a partnership established between the Gallantt Group and Mr. Shobhit Agarwal, who is a trusted figure in real estate development in Gorakhpur. The Gallantt Group is a diversified entity involved in steel and power manufacturing, with a market presence on both the BSE and NSE.

Mr. Shobhit Agarwal, a notable developer in Gorakhpur, has successfully launched numerous retail, commercial, and housing projects under the

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