Indian Hospitality Firm Suba Group Acquires Leisure Chain 1589 Hotels

Suba Group, which is a Mumbai based mid-segment hospitality firm has acquired a major stake in the budget hospitality chain 1589 Hotels. Suba, as part of the deal, acquired 35 hotel properties of 1589 Hotel’s brands GenX, RNB and RNB Select. These acquired hotels will now function as Suba’s budget brand Click Hotels.

1589 Hotels is owned and run by Clarks Group of Hotels. The chain has a prominennt presence in places such as Lucknow, Dalhousie, Varanasi, Ranthambore, etc. On the other hand, Suba Group of Hotels has a strong presence in India and UAE, with 15 hotels and 700+ rooms across 11 destinations. It has 2 brands – Suba Hotels, which are a three and four star hotel chain, and Click Hotels, which is a budget hotel brand.

Suba Group which has a strong presence in the business hotels segment hopes to penetrate into the leisure market segment as well with this acquisition. The leisure market is expected to recover and bounce back strongly after the pandemic gets under control. 1589 Hotel’s strong presence in the leisure and wedding segment is likely to open new avenues for Suba to grow further, according to Mansur Mehta, MD of Suba Group of Hotels.

Suba Group can also benefit, after this acquisition, from 1589 Hotel’s prominent position in North India. Suba now has reached 2000 rooms after this acquisition. Suba is planning to implement modern technology such as online booking engine, iPads and BYOD (bring your own device) for quick and easy check-ins, registrations, etc to the recently acquired properties.