Hospitality firm Viceroy Hotels, where ace broker Rakesh Jhunjhunwala and family holds 14.64% stake, proposes to sell hotel and residential properties located in Chennai in favor of Ceebros Hotels Pvt Ltd, which runs Raintree Hotels in Chennai, for a consideration of Rs 480 crore. The Viceroy HotelsBSE 20.00 % board that met on Wednesday has approved a proposal to dispose off the Chennai properties and decided to seek the approval of its shareholders through postal ballot.
Ceebros Hotels, incorporated in 1980, is a diversified business group with interests in real estate, hospitality and power generation and runs two hotels under 'Raintree' brand in Chennai.
Viceroy Hotels had in May 2011 announced decision to divest the Chennai hotel and residential properties in favor of Mahal Hotels and Esteem Housing Developers, respectively. Its managing director Prabhakar Reddy in 2011-12 annual report said the sale helps the company reduce debt to the tune of Rs 520 crore and enable Rs 70 crore of cash inflows.