Pakistan Hospitality Investment Gains Momentum After CCP Approval
Pakistan hospitality investment saw a major boost after the Competition Commission of Pakistan approved a new transaction. The commission authorised JS Hotel REIT to acquire Elite Hospitality Ventures. This decision came under Section 11 of the Competition Act, 2010.
The approval followed a detailed review of the proposal. In addition, the CCP examined the case under the Competition (Merger Control) Regulations, 2016. As a result, the deal cleared all regulatory requirements.
JS Hotel REIT is a new Shariah compliant hybrid REIT scheme. It operates under the Real Estate Investment Trust Regulations, 2022. The company plans to buy shares of Elite Hospitality Ventures through a Share Purchase Agreement.
What the Deal Means
Elite Hospitality Ventures is a special purpose company. It aims to build and operate a four star Hilton Garden Inn hotel in Hyderabad. The planned hotel will add new options for travellers and offer modern services. Therefore, the project carries strong economic potential for the region.
The CCP reviewed several factors while assessing the acquisition. For example, it evaluated the structure of the deal, the market impact, and the competitive environment. The commission also studied the hospitality landscape in Hyderabad.
The findings showed that neither JS Hotel REIT nor Elite Hospitality Ventures is currently active in the hospitality market. In addition, the CCP found no overlap in business operations. This means the deal does not create competition concerns.
The commission concluded that the acquisition is non horizontal in nature. It does not reduce competition, distort the market, or strengthen a dominant position. As a result, the CCP authorised the transaction under Section 31(1)(d)(i) of the Competition Act, 2010.
This approval is expected to support future investments. It may also encourage new development in the hospitality sector. Moreover, the project signals confidence in Pakistan’s growing real estate and tourism landscape.
