Funds are pouring into India's hospitality space like never before and now its none other than Morgan Stanley. It has decided to invest in the company that owns Ananda Spa, which may just help the company tap the capital markets in a couple of years.
Morgan Stanley is now investing 15 per cent in IHHR, the parent company with an aim to take it to the markets in a couple of years from now. That's not all. For the company the success story will lie beyond wellness and that's why its targeting business hotels to expand its footprint in Delhi, Hyderabad, Pune and hopes to have nine properties under the Ista brand over the next three years.
However, Morgan Stanley is not alone. Warburg Pincus picked up 27 per cent stake in Delhi-based Lemon Tree Hotels for Rs 280 crore, Isthithmar is in a Rs 450-crore JV with Europe's EasyGroup, while ICICI Venture Funds got a stake in Viceroy Hotels for Rs 100 crore.
So for the group headed by Ashok Khanna, while the Ananda story will not dot city landscape, he will turn his Ista business hotel brands into the profit machine. With international PE funds including Blackstone, ChrysCapital and Trikona evaluating deals for investing in the hospitality sector, funding will not be a problem for now.
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