Hotels & resorts company signs 10-year lease for 84-room hotel in Ayodhya, opening H1 2026 under its brand

The company has a market cap of Rs 360 crore and the stock is up by 42 per cent from its 52-week low of Rs 101.90 per share.

Grand Continent Hotels Limited (GCH) has entered into a Memorandum of Understanding (MOU) with TAXSHILA INTERNATIONAL PRIVATE LIMITED on May 24, 2025. This MOU signifies GCH's intent to operate a hotel at Land No. 919/1603, 920 (KA), 919/1608, Mauza-Manjha Barhata, Ayodhya. The MOU itself has a duration of three months, allowing the parties to finalize a definitive lease/rental agreement, which is anticipated to have a tenure of 10 years.

The planned hotel, operating under the "Grand Continent" brand, is expected to go live in the first half of calendar year 2026. It will be a comprehensive facility featuring 84 rooms, a restaurant in the lobby, a rooftop restaurant, a coffee shop, a banquet hall, a swimming pool, gym, car park, and a bakery and café near the swimming pool area, aiming to provide a full range of services for guests.

Additionally, Grand Continent Hotels Limited (GCH) has entered into a Revenue Sharing Agreement on May 24, 2025, with The Grand Anantajit, a proprietorship firm owned by Mr. Luna Laxman Bhayabhai. This agreement grants GCH the right to operate and manage only the 42 fully furnished hotel rooms at the property located at S. Sheet No. 30, C.S. No. 79, Village- Dwarka, Ta. Dwarka, District, Devbhumi Dwarka. GCH plans to brand this property as "Grand Continent," with the hotel rooms expected to be operational by June 2025. The agreement includes a fit-out period from June 1, 2025, to July 31, 2025, followed by a 10-year operational tenure starting August 1, 2025, with a lock-in period of 3 years from the signing date.

Founded in 2011, Grand Continent Hotels Limited is a Bengaluru-headquartered hotel chain primarily targeting India's mid-market segment, encompassing Upper Mid-Priced, Mid-Priced, and Economy hotels. The company operates on an asset-light model, primarily leasing its properties, with only two hotels owned in Bengaluru.

As of the first half of fiscal year 2025, Grand Continent Hotels managed 16 operational properties and 753 keys, catering to Indian middle-class guests and business travelers. Its brand portfolio includes its own "Grand Continental Hotels" brand, alongside franchisee partnerships with established names like Sarovar Hotels and Royal Orchid Hotels, strategically expanding its reach and brand presence across the country. The company has a market cap of Rs 360 crore and the stock is up by 42 per cent from its 52-week low of Rs 101.90 per share.

Disclaimer: The article is for informational purposes only and not investment advice.