Mumbai, Jun 30 (PTI) Affordable hospitality company Suba Group on Wednesday said it has acquired a controlling stake in Clarks Group of Hotels' leisure budget hotels chain 1589 Hotels.

Suba Group of Hotels, which was established in 1996, diversified into two brands in 2015 - Suba Hotels (a 3- and 4-star hotel group) and Click Hotels (a new-age budget hotel group).

This acquisition is part of Click hotels' expansion drive in the budget hotel segment, the Mumbai-based hospitality company Suba Group said in a statement without disclosing the deal size.

Click Hotels by Suba has added 35 new properties to its portfolio across 22 prime destinations across India, which marks the milestone of total 2,000 rooms. By 2023, Click Hotels by Suba is planning to cross 3,000 rooms.

Following its acquisition, Click Hotels by Suba has marked its transition to an asset-light business model.

Owned and run by Clarks Group of Hotels, 1589 Hotels, was set up as a separate division under which most hotel and resort properties were on management contract.

The Click Hotels by Suba will now directly manage 50 prime hotel properties across India, UAE and Nepal. It has also expanded its footprint with this acquisition across key tourist destinations including Ranthambore National Park, Jim Corbett National Park, and Dalhousie among others.

"We are on a mission to acquaint hotels across the country with ultra-modern hospitality services. Our latest acquisition drive is in line with this vision. The majority of our acquired properties cater to the leisure segment and perfectly complement our existing portfolio of business hotels," Suba Group of Hotels Managing Director Mansur Mehta said.

The hospitality group has further forayed into the leisure segment building on its 'Bed, Breakfast, and Broadband' and affordable luxury model.

Meanwhile, Co-founder Brij Hotels and Resorts, started by the promoters of the Clarks Group, Anant Kumar told PTI that it was time for the promoters to move back to their roots and this was enabled by getting a majority partner in 1589 hotels.

"We are happy to announce the association with Suba hotels and Click Hotels, who have a vision to grow in the budget and mid-market space. This acquisition is aligned with this vision. We, going forward, want to focus on the upscale and the luxury segment and on growing our uber luxury brand Brij," Kumar added.

Properties of Brij Hotels & Resorts are currently in Varanasi, Dalhousie, Jawai and Jaipur and has a pipeline of under construction resorts in Kukas, Jaisalmer and Udaipur in Rajasthan.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)