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The half-constructed hotel property of Balaji Hotels and Enterprises Ltd on the arterial Anna Salai in Chennai has been bought by the US-based Hyatt group from Balaji Hotels' creditors,IFCI it is learnt. Sources said that the consideration was slightly more than Rs 200 crore. Global Hyatt Corporation of the US is the owner of the Hyatt brand under which there are at present 215 hotels and resorts with over 90,000 rooms in 43 countries. This acquisition brings to an end a long saga of a frustrated project, which began with a big promise way back in 1994. When the Balaji group, which had interests in steel, liquor, shipping and shrimp farming, folded up under the weight of debts — but mainly after the group's founder and industrialist Mr Magunta Subbarami Reddy, was murdered by Naxalites on December 1, 1995, the imposing structure that was coming up at the landmark Abbotsbury in Chennai, stopped in its tracks. Then began negotiations with a series of suitors. At one point, it appeared as though a Singapore company would put up a hospital there, but to no avail. One key fallout of acquisition of the property by Hyatt is the release of about Rs 200 crore of non-performing loans from the banking system. IFCI, the main creditor, would benefit from the transaction. The hotel was designed to be a 320-room 7-star facility. Also included in the original project was a 2.5 lakh sq.ft. commercial space. | 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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