JS Hotel REIT Gets CCP Nod to Acquire Elite Hospitality Ventures

The Competition Commission of Pakistan has approved the acquisition of Elite Hospitality Ventures (Private) Limited by JS Hotel REIT, marking a key step in the expansion of Pakistan’s Shariah-compliant real estate investment trust sector. According to the approval issued under Section 11 of the Competition Act, 2010, JS Hotel REIT will acquire shares of Elite Hospitality Ventures through a Share Purchase Agreement. The REIT is a newly established Shariah-compliant hybrid scheme operating under the Real Estate Investment Trust Regulations, 2022. Elite Hospitality Ventures is a special-purpose company set up to develop and operate a planned four-star Hilton Garden Inn hotel in Hyderabad. The CCP reviewed the structure of the deal, its effect on competition, and any possible impact on the hospitality sector in Hyderabad. The commission noted that neither JS Hotel REIT nor Elite Hospitality Ventures is currently active in the hotel market, meaning the acquisition involves no horizontal overlap and no vertical linkages. After examining potential competitive concerns, the CCP concluded that the transaction does not lessen competition, distort the market, or create a dominant position for any party. The regulator therefore authorised the deal under Section 31(1)(d)(i) of the Competition Act. The approval is expected to facilitate progress on the planned hotel project while contributing to the growth of Shariah-compliant REITs in Pakistan’s real estate and hospitality sectors.