However, a detailed valuation of the corporation will be submitted by HCI global advisors Jardine Flemming early next week, say sources.

The bids for the disinvestment of HCI are being invited for individual properties to maximise buyer interest. Buyers will also be given an opportunity to bid for the entire corporation as well.

HCI is currently undertaking an elaborate renovation exercise to upgrade its facilities in all prime locations. Hotel Corporation managing Director RC Aggarwal told The Financial Express: "We are sprucing up our facilities at a cost of Rs 10 crore in the first phase, so that the government can mop up a maximum consideration out of its disinvestment."

HCI, a wholly-owned subsidiary of Air India with a networth of around Rs 50 crore operates several star hotels, including the Centaur Hotel Juhu Beach, Mumbai with 368 rooms, out of which 88 are under renovation, Centaur Hotel Mumbai Airport with 288 rooms and Centaur Hotel IGI Airport Delhi with 376 rooms, out of which 180 rooms are under renovation. Other hotels include Centaur Lake View Hotel, Srinagar, with 242 rooms, and a four star Hotel at Rajgir in Bihar with 26 rooms.

It also has two flight kitchens, one in Delhi adjoining the Centaur Hotel Delhi Airport and other at Chefair Mumbai, located near the international airport. HCI has an employee strength of 4,066 employees.

An Air India release issued on Thursday states that Air India will shortly issue an advertisement relating to expression of interest for disinvesting its stake in its wholly-owned subsidiary Hotel Corporation of India.

Jardine flemming is currently in the process of finalising the various formalities associated with the disivnerstment. The board of Air India also cleared various outstanding issues, which were required to be sorted out prior to the disinivestment.

Experts believe that a number of international chains are keenly looking at the Indian hotel market and the HCI disinvestment might just set the ball rolling for them, which may further witness a spate of acquisitions according to MNC hotel investment bankers.

The timing of the disinvestment is perfect, analyst say, particularly with the improvement in the overall prospects of the hotel industry in the country.