Several key hotel assets are up for grabs across India, as their owners look to encash them to retire rising debt or generate working capital. In recent times, companies like DB Group, DLF, Eros, Leela and Royal Orchid Hotels, among others, have put their hotels in various parts of the country on the block.
Though the company denied it,
DB Hospitality is in the process of selling its under-construction hotel, the Park Hyatt on Marine Lines in Mumbai, and also the new Grand Hyatt in Goa, says a Mumbai-based property consultant, who did not want to be named. A consultant in Delhi said he is in touch with builder Eros to sell its Mayur Vihar property that houses a Hilton hotel, which is expected later his year. India's largest real estate player DLF has been trying to sell its portfolio of luxury hotels under the Aman Resorts brand, which has a total of 23 hotels. The sale is expected to fetch the company between 2,000-2,500 crore, which will help it reduce its debt of over 23,000 crore. "A lot of companies are going the asset light way to restructure their debt," says Siddharth Thaker, managing partner at Prognosis Global Consulting. Many of these companies had taken a huge debt while expanding business a few years ago. With the markets slowing down, their debt has mounted but these properties have either not been completed or have not performed well. Some of these companies are now looking at selling their hotels and then taking them back on management contract. Luxury hotel firm Leela, which has a debt of over 4,000 crore, has now put its new Chennai property on the block. Last year, it had sold its hotel in Kovalam for 500 crore to NRI businessman Ravi Pillai and had done a long-term management deal with the new owner.
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Search for Jobs with Leela hotels
DB Hospitality is in the process of selling its under-construction hotel, the Park Hyatt on Marine Lines in Mumbai, and also the new Grand Hyatt in Goa, says a Mumbai-based property consultant, who did not want to be named. A consultant in Delhi said he is in touch with builder Eros to sell its Mayur Vihar property that houses a Hilton hotel, which is expected later his year. India's largest real estate player DLF has been trying to sell its portfolio of luxury hotels under the Aman Resorts brand, which has a total of 23 hotels. The sale is expected to fetch the company between 2,000-2,500 crore, which will help it reduce its debt of over 23,000 crore. "A lot of companies are going the asset light way to restructure their debt," says Siddharth Thaker, managing partner at Prognosis Global Consulting. Many of these companies had taken a huge debt while expanding business a few years ago. With the markets slowing down, their debt has mounted but these properties have either not been completed or have not performed well. Some of these companies are now looking at selling their hotels and then taking them back on management contract. Luxury hotel firm Leela, which has a debt of over 4,000 crore, has now put its new Chennai property on the block. Last year, it had sold its hotel in Kovalam for 500 crore to NRI businessman Ravi Pillai and had done a long-term management deal with the new owner.
Source
Search for Jobs with Leela hotels