Mumbai: Imagicaaworld Entertainment Ltd. has agreed to sell its five-star Novotel Imagicaa resort in Khopoli, Maharashtra, to Juniper Hotels Ltd. for Rs 248 crore as part of a plan to raise capital for expansion while keeping its overall debt position under control.

The proposed transaction involves the operating hotel located next to the Imagicaa Theme Park and Water Park, close to the Mumbai-Pune Expressway. Juniper Hotels has approved the acquisition and entered into a binding memorandum of understanding with Imagicaaworld for the proposed deal.

The transaction values the property at about Rs 86 lakh per room. The acquisition is expected to add an operational hospitality asset to Juniper Hotels’ portfolio, while Imagicaaworld plans to use the proceeds to support its broader entertainment and expansion strategy.

Why Imagicaaworld is selling the hotel

According to the company’s exchange filing cited by NDTV Profit, the sale proceeds are intended to support Imagicaaworld’s long-term capital requirements.

The company plans to use the capital for expanding its park business geographically, adding attractions at existing locations and supporting its entry into indoor entertainment. The transaction is also expected to help the company maintain its overall debt position at a lower level.

The sale therefore forms part of a broader strategy to focus capital on the company’s entertainment businesses while monetising an existing hospitality asset.

Novotel Imagicaa property details

Novotel Imagicaa is situated on approximately 11 acres in Khopoli and is located next to the Imagicaa Theme Park and Water Park.

The hotel has a built-up area of around 2.8 lakh square feet and comprises 287 guest rooms. Its facilities include restaurants, banquet and meeting venues, a spa and recreational amenities.

Its location in the Mumbai-Pune corridor gives the property access to two major urban markets. The airport is also accessible within roughly two hours, according to business reports on the proposed transaction.

The hotel’s proximity to Imagicaa’s theme and water parks also makes it an integrated hospitality asset serving visitors to the entertainment destination.

Juniper Hotels expands operating portfolio

For Juniper Hotels, the acquisition provides an operating hotel rather than a greenfield development.

The company said the purchase would support its long-term objective of building a portfolio of large hotels in business and leisure destinations. An operating property can also provide cash flows without the development timeline associated with building a new hotel from the ground up.

Juniper is also evaluating the possibility of repositioning and rebranding the property in the upper-upscale segment, according to reports on the company’s announcement.

At Rs 248 crore for 287 rooms, the proposed acquisition works out to approximately Rs 86 lakh per key.

Deal subject to definitive agreements

The Rs 248 crore consideration is proposed as a lump-sum purchase price, subject to tax deduction at source, stamp duty, transaction costs and other adjustments, if applicable.

The final transaction is also subject to the terms and conditions of definitive documents that may include a deed of conveyance, business transfer agreement, asset purchase agreement, slump sale agreement and related documents.

The proposed acquisition is expected to be completed on or before March 31, 2027, according to hospitality industry reports.

Imagicaaworld shares rise after announcement

Imagicaaworld Entertainment’s shares gained 5.08% during the trading session on September 16, closing at Rs 52.99, according to NDTV Profit.

The stock had opened at Rs 50.33, compared with its previous close of Rs 50.43, and moved between Rs 49.25 and Rs 56.34 during the session. Its 52-week range was reported at Rs 36.84 to Rs 62.00.

The proposed hotel sale comes as Imagicaaworld seeks to allocate capital towards its core entertainment expansion plans.

A strategic shift in capital allocation

The proposed sale of Novotel Imagicaa represents a change in how Imagicaaworld plans to deploy capital. Rather than retaining the hotel as part of its portfolio, the company intends to unlock value from the operating hospitality asset and redirect the proceeds towards expansion of its parks and entertainment businesses.

For Juniper Hotels, meanwhile, the acquisition would add a 287-room operating property in a leisure-focused destination near Mumbai and Pune.

The transaction remains subject to completion of the required agreements and other applicable conditions. If completed as proposed, ownership of Novotel Imagicaa will move from Imagicaaworld Entertainment to Juniper Hotels by the stipulated completion date.