NewsCorporate ActionsSpice Lounge Food Works Expands into Luxury Hospitality with Rightfest AcquisitionSpice Lounge Food Works Expands into Luxury Hospitality with Rightfest Acquisition
Spice Lounge Food Works Limited has approved the acquisition of 100% shareholding in Rightfest Hospitality LLP, a player in India's premium nightlife and experiential entertainment industry. The deal, expected to complete within 12 months, is a related party transaction. Rightfest, founded in May 2022, operates SALUD in Goa and XORA in Hyderabad, with plans for a new restaurant 'Sasya'. Rightfest's turnover is projected to reach ₹42 crores by 2025. This move marks Spice Lounge's entry into the luxury hospitality sector, aligning with its horizontal expansion strategy. The company is also considering acquiring a majority stake in Blackstone Management LLC.
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Spice Lounge Food Works Limited , a company listed on multiple Indian stock exchanges, has announced a significant move into the luxury hospitality sector. The company's Board of Directors has approved the acquisition of Rightfest Hospitality LLP, a rapidly growing player in India's premium nightlife and experiential entertainment industry.
Acquisition Details
- Target Company: Rightfest Hospitality LLP
- Acquisition Stake: 100% shareholding
- Transaction Type: Related party deal (Non-Executive Independent Director Vinay Kesaram holds majority stake in Rightfest)
- Expected Completion: Within 12 months
About Rightfest Hospitality
Founded in May 2022, Rightfest Hospitality has quickly established itself in the luxury hospitality scene:
- Key Venues:
- SALUD in Goa (ocean-view club)
- XORA Bar & Kitchen in Hyderabad (modern dining and entertainment)
- Guest Count: Over 1.6 lakh in two years
- Upcoming Venture: "Sasya", an authentic South Indian specialty restaurant in Hyderabad
Financial Performance
Rightfest has shown impressive growth in its short existence:
| Year | Turnover (in Crores) |
|---|---|
| 2025 | 42.00 |
| 2024 | 25.00 |
| 2023 | 15.00 |
Strategic Rationale
The acquisition aligns with Spice Lounge Food Works' strategy for horizontal business expansion and revenue growth. It marks the company's entry into the premium nightlife and experiential entertainment sector, which is experiencing rapid growth across metropolitan areas and tourist destinations in India.
Additional Developments
In a separate but related move, the Board has authorized Chairman Mohan Babu Karjela to evaluate a potential majority stake acquisition in Blackstone Management LLC. This further underscores the company's aggressive expansion strategy.
Conclusion
This acquisition represents a significant pivot for Spice Lounge Food Works, potentially transforming its business model and market position. As the company moves beyond its traditional culinary focus, investors and industry observers will be keenly watching how this diversification impacts its growth trajectory and financial performance in the coming years.
