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Juniper Hotels gains 2% on strategic acquisition of Novotel Imagicaa
Juniper Hotels' shares have lost 12 per cent so far this year even as they have rallied 13 per cent in a month, according to NSE data.
Juniper Hotels' shares rose over 2 per cent in early trade on Thursday after the company announced the acquisition of Novotel Imagicaa, an operating hotel undertaking located at Khopoli, District Raigad, Maharashtra for a consideration of ₹248 crore.
The stock hit the day's high of ₹219.07 on the National Stock Exchange (NSE), up 2.2 per cent as against the last closing price of ₹214.32 apiece. As of 9.33 AM, it was trading 1.71 per cent higher at ₹217.98.
Juniper Hotels' shares have lost 12 per cent so far this year even as they have rallied 13 per cent in a month, according to NSE data. The stock was listed on the exchanges in February 2024 and hit an all-time high of ₹538.25 on April 5, 2024. Its all-time low stands at ₹188.50, touched on March 30, 2026.
Juniper will acquire the 287-key Novotel Imagicaa, Khopoli, which is spread across approximately 11 acres, providing it a strategic presence in the Mumbai–Pune corridor, catering to leisure, social, and MICE segments, said JM Financial.
The hospitality firm has entered into a binding memorandum of understanding (MoU) for the transaction, which values the asset at approximately ₹86 lakh per key. “Novotel Imagicaa represents the kind of asset we look for. It is an established hospitality property with scale, a strong destination proposition, and multiple demand generators,” said Arun Kumar Saraf, chairman and managing director of Juniper Hotels Limited. READ MORE
Based on the information available at present, the proposed transaction is expected to be completed on or before March 31, 2027, the company said in an exchange filing. ALSO READ: Asset Reconstruction Company shares debut at IPO price of ₹139 on bourses
According to JM Financial, the hotel would generate stable cash flows from day one, avoiding the long lead times typically associated with greenfield development. "Management sees scope to rebrand the property to upper-upscale, add banqueting/ballroom capacity and leverage Juniper’s asset-management capabilities to drive efficiency."
Novotel Imagicaa clocked an Ebitda of ₹22 crore and ₹16 crore in FY25 and FY26, respectively. This implies multiples of 11.5x and 15.5x on its FY25 and FY26 performance, respectively. According to the brokerage, while details on the financing structure aspect have not been disclosed, the company has a strong balance sheet (0.3x net D/E) with enough headroom for debt.
The entry valuation appears favourable, with further upside from the opportunity to upgrade brand positioning, as per the analysts. While Juniper is already developing c. 1,450 keys across four assets, the acquisition would take the company a step closer to its target of doubling its portfolio to c. 3,900 keys by FY31E, it added. ALSO READ: Stock Market LIVE: Nifty near 23,250; HDFC Life, Eternal top gainers
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