Muthoot Group acquires resort in Costa Rica

Muthoot Leisure and Hospitality Services (MLHS), an arm of the Muthoot Group, has acquired Xandari Resort & Spa Costa Rica, it said on Wednesday.

 

Based in Alajuela, Costa Rica, luxurious property Xandari Resort & Spa becomes the first overseas acquisition by the company, MLHS said in a statement.

 

The company did not disclose the size of the deal.

 

MLHS has also extended collaboration with Raxa Collective to manage the property hereon, it said, adding that it plans to spend 200 crore on expansion in the next two years.

 

Xandari Resort & Spa is a "tropical paradise" of 24 individually-designed villas nestled on a 40 acre plantation overlooking the central valley of Costa Rica, it said.

 

Costa Rica is the most visited nation in the central American region, with 2.2 million foreign visitors in 2011.

 

International tourist receipts rose to $2.4 billion in 2012, and the lead country of origin was the United States, followed by Nicaragua and Canada.

 

This is the first acquisition by an Indian hospitality company in Central America, MLHS executive director George M George said.

 

"I am confident that the uniqueness of this property will appeal to global visitors and will go a long way in strengthening our business here," he said.

 

"Having said that, India continues to be our focus market and we will announce our domestic expansion plans very soon."

 

As of 3:11 p.m., shares in Muthoot Finance were trading at Rs 172.15 apiece on the BSE, up 7.93 per cent from the previous close.