CCP clears Nishat Hotels’ acquisition of Hotel Margala

KARACHI: The Competition Commission of Pakistan (CCP) has approved the acquisition of Hotel Margala by Nishat Hotels and Properties Limited, clearing the way for the hospitality group’s expansion into Islamabad.

Under the sale and purchase agreement, Nishat Hotels will acquire all assets of Hotel Margala, including leasehold rights to its Srinagar Highway plot, the hotel’s built-up structure, fittings and fixtures, utility connections, and all movable property on-site.

The CCP’s competition review assessed potential concerns over market dominance and competitive impact, defining the relevant product market as hospitality services within Islamabad. Hotel Margala, a 92-room facility, currently holds an estimated 5.46 per cent share of the city’s hospitality sector.

The commission found that while both Nishat Hotels and Hotel Margala operate in the hospitality industry, their geographic markets remain distinct -- Nishat Hotels is primarily based in Lahore, whereas Hotel Margala operates solely in Islamabad.

With no direct market overlap and moderate entry barriers in the sector, the CCP determined the transaction would not lead to anti-competitive effects or significant market concentration.