CCP approves Nishat Hotels' acquisition of Hotel Margala

February 22, 2025 (MLN): The Competition Commission of Pakistan (CCP) has approved the acquisition of assets of Hotel Margala Private Limited by Nishat Hotels and Properties Limited.

Under the Sale and Purchase Agreement, Nishat Hotels and Properties Limited will acquire the assets of Hotel Margala, including leasehold rights to its plot on Srinagar Highway and the entire built-up structure of the motel.

The acquisition also includes fittings and fixtures, utility connections, associated deposits, and all movable property on the premises.

As part of its competition assessment, the CCP examined potential concerns related to market dominance and the impact on competition following the merger.

The relevant product market has been defined as hospitality services, with the relevant geographic market determined to be Islamabad.

Hotel Margala, a 92-room facility, currently holds an estimated 5.46% market share in Islamabad’s hospitality sector, according to the press release.

The transaction is horizontal in nature, as both companies operate within the hospitality sector; however, their geographic operations are distinct.

Nishat Hotels and Properties Limited primarily operates in Lahore, while Hotel Margala Private Limited is exclusively based in Islamabad.

Given the absence of a direct geographic market overlap, the transaction is unlikely to impact competitive dynamics or raise market concentration concerns.

Furthermore, barriers to entry in the hospitality sector remain moderate, mitigating any potential anticompetitive effects.

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