Nepal based diversified conglomerate, Chaudhary Group(CG), is planning to pick up the 42 per cent stake held by PE firm Lighthouse Funds in Mumbai based hotel management company, Concept Hospitality.

With this buyout, group company CG Hospitality would be increasing its stake in Concept Hospitality from the current 10 per cent to over 50 per cent which would make it a majority stake holder. The balance stake would be held by the Kannampilly family, the promoters of Concept Hospitality

Suhail Kannampilly, COO, Concept Hospitality, told Businessline, `` The PE firm Lighthouse Funds would be exiting Concept Hospitality, having picked up a 42 per cent stake in 2009 with a valuation of Rs 55 crore. We are hoping this valuation goes up significantly as we intend closing the deal by next month when the CG Group becomes a majority shareholders after buying out the stake of the PE fund.’’

Currently Concept Hospitality has 47 hotels under management and another 28 hotels at various stages of development. Its portfolio includes 33 operational properties under The Fern and The Fern Residency brands, 8 properties under Beacon Brand and 6 independently branded hotels.

The Kathmandu headquartered CG Group is already setting up three property funds to buy hotel assets to increase its hospitality portfolio in different regions including India.

Its investments into Concept Hospitality is also expected to be part of these funds.

Concept Hospitality already manages some hotels for the CG Group in Nepal and Srilanka. With CG Group becoming a majority shareholder, it expects to grow along with it in markets like Africa, Asia and the GCC countries along with India to manage its hotels.

`` Since the CG Group has set up funds to acquire hotels and land in India, we expect to manage these as well under our hotels portfolio,’’ added Kannampilly.

For instance the CG Group is planning to bring in new lifestyle brands like The Zinc to India and Concept Hospitality expects to bag new management contracts for such brands going forward.

The CG Group already has presence in India through its FMCG brand of Wai Wai noodles which it is extending as a QSR business. Besides in the hospitality business, it has forged a JV with Taj Safaris.

The hotel management company of Concept Hospitality is targeting revenues of Rs 325 crore this fiscal and expects to manage 57 hotels by the end of the year.

`` There are better occupancy levels in the hospitality industry today although the rates have yet to catch up,’’ added Kannampilly.