Sahara India's Luxury Hospitality Ventures

            

Details


Case Code : CLBS129
Publication date : 2012
Subject : Business Strategy
Industry :Hospitality
Length : 03 Pages

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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The case is about India-based business conglomerate Sahara India Parivar's (Sahara's) ventures in international hospitality. Sahara made a few high-profile acquisitions in London and New York, marking its entry into the international hospitality industry. The case discusses the strategies the company adopted to venture into hospitality business.

Issues:

Inorganic growth strategies.
Expansion into international markets.

Introduction

In July 2012, Sahara India Pariwar (Sahara) , the India-based business conglomerate, acquired a controlling stake in the century-old Plaza Hotel in New York. The Plaza Hotel was jointly owned by Elad Properties (Elad) , an Israel-based Real Estate Company, and Saudi Arabia-based Kingdom Holdings Co (Kingdom Holdings) . The deal, as reported by Elad , was worth US $ 570 million . Market analysts believed that Sahara’s presence in the hospitality sector had grown prominent with this deal after its other hotel acquisitions within and outside India...

Questions for Discussion:

1. Analyze the expansion strategies of Sahara in the hospitality sector.
2. Discuss the challenges that Sahara might face because of these expansions.
3. What are the factors that led to Indian hospitality majors venturing into international markets?

Key words:
Sahara India Parivar, Amby Valley, Plaza Hotel New York, Centaur Hotel, Grosvenor House Hotel, Elad Properties, Dream Downtown Hotel

Note
* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.