Jaypee Group?s hospitality division has put Jaypee Siddharth, its recently renovated Delhi property, on the block. Industry sources said the asking price for this 94-room premium hotel in the commercial hub of central Delhi is about R375 crore.
Jaypee, which owns and operates its properties, has around seven hotels in Delhi, Greater Noida, Agra and Mussoorie. When contacted, Manju Sharma, director, Jaypee Hotels, declined to comment. However, industry sources who confirmed the company is scouting for buyers said: ?It wants to sell this property to plough back funds into some of its other projects under the hotel division. The property is doing well with 70-80% occupancy.
A hospitality sector analyst said: ?Since Jaypee is now focussing on sports tourism and has expansion plans for its four-star brand and developing properties on its land parcels, it might want to deploy the proceeds of the sale in other hospitality projects.?
Jaypee Hotels is a part of the R10,000-crore diversified business conglomerate Jaypee Group that has interests in engineering, construction, power, cement, real estate and recently, sports. The Group?s latest addition is the Jaypee Golf and Spa Resort in Greater Noida, developed close to Jaypee?s F1 track. The property that covers around 8 lakh sq feet area (excluding the golf course) was developed at a project cost of more than Rs 500 crore. It will house India?s first Six Senses Spa that will open its doors in couple of months. Besides five-star, Jaypee also has a four-star brand Delcourt and is aggressively looking at expanding in that segment, Sharma had told FE earlier.
In a bid to turn asset-light, many hotel companies have been offloading their assets. At the same time, there has been a pressure on room rates and many hotel companies have mounting debts.
Last week, hospitality company Royal Orchid Hotels sold its Ahmedabad property to Gurgaon-based investment firm SAMHI Hotels for Rs 67 crore as a part of a debt reduction plan.
