Morgan Stanley to Sell 26% Stake in IHHR Hospitality

American financial services provider, Morgan Stanley is planning to exit IHHR Hospitality, which owns the world's top-rated spa, Ananda in the Himalayas. Morgan Stanley will sell its 26% stake to Choudhrie family, largest shareholder in IHHR.

Morgan Stanley invested around $40 million in 2007 for 26% stake in the company.

Post the deal, Choudhries’ stake will rise from 62% to 80% in IHHR.

Founded in 1998 by Gautam Khanna, IHHR owns and manages Destination Spas and luxury business and leisure hotels.

IHHR started operations in the year 2000 by launching a destination spa under the name 'Ananda in the Himalayas' at Rishikesh, India. It manages and operates a business hotel chain under the brand name 'Ista'. Presently there are four operational Ista properties located in Bangalore, Hyderabad, Amritsar and Pune.

IHHR Hospitality is also scouting for international hotel operators to manage its Ista brand of hotels in Bangalore, Hyderabad, Amritsar, Ahmedabad and Pune.

London based - Choudhrie family also owns real estate firm Alpha G Corp, Gurgaon.