Imagicaaworld Entertainment has approved the proposed sale of its 287-key Novotel Imagicaa hotel in Khopoli to Juniper Hotels for Rs 248 crore, with the proceeds to be redeployed into its higher-margin parks and entertainment businesses
Imagicaaworld Entertainment has approved the proposed divestment of its 287-key Novotel Imagicaa hotel in Khopoli to Juniper Hotels for an aggregate consideration of Rs 248 crore, as the amusement park operator seeks to recycle capital into its core entertainment business.
The company said the proposed transaction is aimed at unlocking value from a mature hospitality asset and redeploying capital towards its higher-margin parks business, including park expansion, new attractions and indoor entertainment formats.
The transaction remains subject to definitive agreements as well as applicable statutory, regulatory and shareholder approvals.
Capital Reallocation
The Novotel Imagicaa is spread across nearly 11 acres and has a built-up area of approximately 2.8 lakh sq ft. Despite the proposed change in ownership, the hotel will continue to be part of the broader Imagicaa destination, with the company expecting existing operational and guest-experience synergies to continue.
Imagicaaworld said the transaction would sharpen its focus on businesses that generate higher returns. According to the company, its parks business operates at EBITDA margins of around 40-45%, compared with 25-30% for its hotel business.
The proposed capital recycling is therefore expected to strengthen the company’s financial flexibility while supporting investments in its core entertainment operations.
Juniper Hotels To Upscale Property
Juniper Hotels is expected to undertake an upscaling of Novotel Imagicaa, which Imagicaaworld said could enhance the overall destination proposition and increase its appeal among overnight and multi-day visitors.
Jai Malpani, Managing Director, Imagicaaworld Entertainment, said the proposed divestment represents an important step in the company’s evolution and would provide additional growth capital and financial flexibility.
He said the company plans to deploy capital towards expanding its entertainment platform across new geographies, strengthening existing parks and building its presence in indoor entertainment.
Malpani added that the strategic relationship between the hotel and theme park would remain unaffected by the change in ownership, with the integration between the two businesses expected to continue.
Focus On Entertainment Growth
The proposed transaction marks a shift towards a more capital-efficient business model for Imagicaaworld, with the company seeking to concentrate resources on its parks and other entertainment formats.
The company operates theme and water parks under brands including Imagicaa, Wet’n Joy, Sai Teerth and Aqua Imagicaa across various locations.
Imagicaaworld said its focus going forward would be on developing differentiated entertainment destinations, expanding across attractive catchments and pursuing sustainable and profitable growth.
