Islamabad, February 22, 2025 – The Competition Commission of Pakistan (CCP) has given its official approval for the acquisition of assets belonging to M/s Hotel Margala Private Limited by M/s Nishat Hotels and Properties Limited.
This strategic move is set to reshape Islamabad’s hospitality sector by bringing a renowned hotel under new ownership.
According to the Sale and Purchase Agreement, Nishat Hotels and Properties Limited will gain full control over the assets of Hotel Margala. These assets include leasehold rights to the prime plot on Srinagar Highway, the entire built-up structure of the hotel, all fittings and fixtures, utility connections, associated deposits, and various movable properties present within the premises. The formal announcement was made through a press release issued on Saturday.
Hotel Margala, a well-established 92-room hospitality facility, holds an approximate 5.46% share in Islamabad’s hospitality market. Known for its convenient location and quality service, Hotel Margala has been a preferred choice for business and leisure travelers alike. With its acquisition by Nishat Hotels and Properties Limited, the hotel is expected to undergo further development and modernization to enhance its services and offerings.
As part of its competition analysis, the CCP closely examined the implications of this acquisition, particularly concerning market dominance and its effect on overall competition. The hospitality sector was identified as the relevant product market, with the geographic scope confined to Islamabad. Given that Hotel Margala operates solely in the capital while Nishat Hotels and Properties Limited primarily serves Lahore, the CCP determined that the transaction would not significantly alter competitive dynamics or lead to excessive market concentration.
The transaction is classified as horizontal in nature since both entities are engaged in the hospitality business. However, due to the lack of direct geographic overlap in their operations, the deal is unlikely to restrict competition or pose significant antitrust concerns. Additionally, the hospitality sector in Islamabad remains open to new entrants, ensuring that barriers to competition remain moderate.
The acquisition of Hotel Margala marks a significant development in Islamabad’s hotel industry. With Nishat Hotels and Properties Limited at the helm, Hotel Margala is expected to witness substantial enhancements, reinforcing its position as a prominent player in the capital’s hospitality landscape.
