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Intercontinental The Grand, New Delhi, owned by late hotelier and politician Lalit Suri is on the block. According to sources, Jyotsna Suri, joint managing director and wife of Lalit Suri, has put an asking price of Rs 900 crore for the Delhi property. Sources close to the deal said the potential suitors could include ITC and a clutch of private equity funds focused on hospitality and real estate space, like the $600 million Sun Apollo Fund. When contacted, ITC declined to comment on its interest in the property. The other domestic hospitality heavyweight, Indian Hotels, is unlikely to show interest, sources said. Mrs Suri is looking at unlocking value of the Bharat Hotels group via a piecemeal deal. This will involve selling off some of the assets and currently the deal is on the table of several hospitality majors. source: Economic Times Industry insiders said the present management is seen grappling with Lalit Suri’s strong political affiliations. With quite a few Intercontinental properties in great locations, industry experts expect buyers to be interested in the prime locations which could be turned into profitable ventures by refurbishing these properties. Earlier, there were talks about an IPO and Mrs Suri had talked about raising Rs 1,000 crore for new hotels. Buyers interested in Intercontinental properties say that they would have to invest considerable sums to bring it on par with international five-star standards and this is pushing down valuations. An email query to Mrs Suri elicited the following reply from the official spokesperson, Anjali Chatterjee: “We wish to reiterate that Bharat Hotels has no plans for disinvestment. In fact, all our projects are also online and work has commenced on some with plans finalised for the rest.” Bharat Hotels is a major player in India’s tourism and hotel sector. It operates its hotels under The Grand banner and its present portfolio of hotels incorporates seven operating hotels with more than 1,500 rooms. PE sources said Trikona Capital and Lalit Suri were close to inking a deal for budget hotels across the country. The deal came to nothing in the event of Suri’s untimely death. Sources added that Mrs Suri, who was managing the interiors of the hotel earlier, was now into a tough management act. In this, the observers are drawing parallels with how the Dubai-based Jumbo Group chairperson Vidya Chhabria liquidated the group companies following the untimely demise of her husband, the late takeover tycoon Manu Chhabria. | Daily Extras! Eclat Me | Success Tip of the Day| 1DailyDiversion| Eclat Web - Must Visit Websites! A Beautiful Pic Every Day! Word of the Day| Quotation of the Day| Make Money! Immigration News! Desire- WOW Stuff! Stock Mkt Updates |
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