ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of Elite Hospitality Ventures (Pvt) Ltd by JS Hotel REIT, clearing the way for the planned development of a four-star Hilton Garden Inn in Hyderabad.
According to a statement issued on Monday, the approval was granted under Section 11 of the Competition Act, 2010 and the Competition (Merger Control) Regulations, 2016.
JS Hotel REIT, a newly established Shariah-compliant hybrid REIT scheme operating under the 2022 REIT framework, intends to acquire shares in Elite Hospitality Ventures through a Share Purchase Agreement.
The target company is a Special Purpose Vehicle set up exclusively to develop and operate the upcoming hotel project.
In its review, the CCP examined the nature of the transaction, the potential impact on market structure and competitive dynamics in Hyderabad’s hospitality sector. The Commission observed that neither entity is currently active in the hotel industry, resulting in no horizontal or vertical overlap.
The regulator concluded that the non-horizontal acquisition does not diminish competition, distort the market or create a dominant position, and therefore authorized the transaction under Section 31(1)(d)(i) of the Competition Act.
The approval allows JS Hotel REIT to proceed with its planned investment in Hyderabad’s hospitality market.
