Three ITDC hotels sold for Rs 117cr

New Delhi, January 25: | Updated: Jan 26 2002, 05:30am hrs
The government has clinched the sale deal of three India Tourism Development Corporation (ITDC) hotels for Rs 117 crore. Lodhi Hotel and Qutab Hotel in Delhi have been sold respectively to Singapore-based Silver Link Holdings and Asian Hotels’ promoter Sushil Gupta. Laxmi Vilas at Udaipur has been sold to Lalit Suri-promoted Bharat Hotels.

While, no bids have been received for ITDC’s Delhi properties Hotel Indraprastha (Ashok Yatri Niwas) and Hotel Kanishka, sources said that bids received for Ranjit and Janpath were below the reserve price.

The sources said Lodhi Hotel had been sold to the highest bidder, Silver Link Holdings promoted by Adrian Zecha for about Rs 72 crore.

While, Mr Gupta has bought Qutab Hotel for about Rs 37 crore excluding transaction and other costs, ITDC’s Udaipur property, Laxmi Vilas, has been bought by Mr Suri for Rs 8 crore.

HSBC Investment Bank and global hospitality hotel consultant HVS International adviced Mr Gupta and Silver Link Holdings on the transactions.

Rebidding of Ranjit, Kanishka, Indraprastha and Janpath hotels will take place soon, the sources said.

According to the sources, Mr Gupta and Mr Umesh Shroff have shown interest in Ranjit Hotel and will participate in the bid.

For Lodhi Hotel, the government had received the highest number of bids which included Silver Link Holdings, Leela Hotels, Bharat Hotels, Nepal-based Chaudhary group and Delhi-based Munjals, industry sources said, adding that in other cases competition was not tough.

The government has already decided not to sell Samrat Hotel for security reasons as it is located close to the Prime Minister’s residence.

The fate of hotels sold to private parties seems bright as Mr Gupta is considering to convert 92-room Qutab Hotel into a Choice Hotel under Quality Inn brand.

Silver Link Holdings, which is pioneer in luxury hotel and resorts, is likely to change the existing 160-room Lodhi Hotel into five-star. Bharat Hotels is also planning to re-position 54-room Laxmi Vilas Palace.

Though slump in tourism and hospitality industry after September 11 had affected the disinvestment of ITDC properties, the situation is improving as entrepreneurs are gradually started taking interest in various properties of the corporation, industry sources said.

Surprisingly, no bid has been received for Delhi’s Ashok, a prime property of ITDC located in the heart of the capital.