The Suba Group, which operates in the mid-tier segment, has acquired a controlling stake in the leisure budget hospitality chain, 1589 Hotels. The development highlights the consolidation taking place in the budget segment where Suba has acquired 35 hotel properties across 1589 Hotels’s sub-brands GenX, RNB, and RNB Select. The acquired properties will become a part of Suba’s budget hotel brand Click Hotels.

Suba did not disclose the deal size of the acquisition. Owned and run by Clarks Group of Hotels, 1589 Hotels was set up as a separate division under which hotel and resort properties were being run on a management contract basis. The hospitality chain has a dominant presence in destinations such as Lucknow, Haldwani, Varanasi, Bhavnagar, Dalhousie, Ranthambore, and Jim Corbett, among others.

“We always had a strong presence in the business hotel segment and this acquisition will help us capture the leisure market which is expected to bounce back strongly after the pandemic. 1589 Hotels portfolio has a strong presence in leisure and wedding destinations which will open new avenues of growth for Suba,” said Mansur Mehta, managing director of Suba Group of Hotels.

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The covid SOP followed by the Group will be implemented across all of the new hotels in a span of 12 months. The existing properties will also convert to Click Hotels during this period.

The family-run hospitality chain, which has a dominant presence across Western India, will also benefit from 1589 Hotels’ reach in the North market. The acquisition takes Suba’s portfolio across 22 destinations in India with a total of 2,000 rooms.