Jin Jiang of China, which owns the Louvre, has a strong presence on many continents and in many countries, with over 4,300 hotels worldwide.
Sarovar of India had its majority stake bought today by Jin Jiang. Said Anil Madhok, who heads Sarovar, which he founded after a stint with the Oberoi group, the Sarovar will now have a global reach.
This is a major development in the travel and hospitality industry in India and worldwide. The Sarovar Group has over 75 properties in India and abroad, with 20 more in pipeline.
Louvre group is the 2nd biggest group in Europe and 5th largest in the world.
The top brass of both the companies said in Delhi on January 12 that the deal was a win-win situation for both, as Sarovar will get the much-needed flow of funds for technology and distribution, and the Louvre will get a foothold in the large Indian market.
They emphasized that the present management at Sarovar will continue as it is.
Pierre Frederic Roulot, CEO, Jin Jiang Europe, said that they believed in letting the local talent run the hotels in their respective areas.
Madhok emphasized that times in the hospitality world were changing, requiring a lot of money for technology and distribution. He was confident that Sarovar will continue to be market leaders in the field.
Louvre already has a presence in India through 25 Golden Tulip hotels since 2008.
Madhok admitted that Sarovar had many suitors but had decided on the Louvre because of its standing and size.
For the Louvre, to get over 75 hotels in one go, was a good business decision.
The top brass did not reveal the financials of the deal but said that Sarovar will continue to be a stakeholder under the new setup.