Private Equity firm Clearwater Capital Partners may acquire 33% stake in Kamat Hotels (India) Ltd.

At today's closing price of Kamat Hotels at Rs.117.50 per share on BSE, its market capitalization was Rs.155 crore. So, based on this, Clearwater might pay Rs.51 crore for 33% stake.

This is not the first investment of Clearwater in the hotel space. It has an investment in Sayaji Hotels and this year in May it increased its stake in Sayaji Hotels to 32.87% after the conversion of foreign currency convertible bonds (FCCBs).

Transaction Reference: Indiainfoline

Kamat Hotels is engaged in the business of hospitality and allied businesses. It has established four hotel brands that includes The Orchid in the 5-Star segment and VITS Luxury Business Hotel in the 4-Star segment, Gadh Hotels and Lotus Resorts.

Kamat Hotels is currently focusing on completing construction work of Orchid Expansion Hotel Project at Mumbai, which would add nearly 120 rooms to its existing 245 five star rooms.

The construction work of this project started in October, 2008 at an estimated cost of Rs.136 crore and is likely to be completed by August 2010.

Apart from this, it is also adding rooms under management contracts. Thenew contracts under O&M include a resort at Udaipur (80 rooms), Karnataka (60 rooms) under the Lotus brand and business hotel at Delhi (150 rooms) under the VITS brand. The company holds immovable properties at Baddi, Raipur, Nagpur, Coimbatore, Kottayam (Kerala) and Amravati for the purpose of developing hotels.

Clearwater Capital Partners LLC is a principal investment firm specializing in financial restructurings; operational turnarounds; and distressed investments. The firm invests in post-restructured or operationally sound public and private and, portfolios, pools, and individual non-performing loans. It focuses credit investments in small to medium sized enterprises (SME's). The firm prefers to invest in Asia ex-Japan.

Its target sectors include Real Estate, Hospitality, Transport & Logistics and basic industries.

Last week, Clearwater capital acquired additional 4.03% stake in Jamna Auto Industries for Rs.15 Cr.

In November last year, the firm has invested Rs.35 crore in Oricon Enterprises, a Mumbai-based manufacturer of packaging products. Its other Indian investments include Adhunik Metaliks, BW Highway, Alp Industries, Gayatri Sugar and Sanghvi Movers. However it has exited from Dolphin offshore Enterprises, Diamond Power, Sabero Organics and Kopran Limited.

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