About 22 companies participated in the India Tourism Development Corporation (ITDC)’s roadshow on Monday to give their feedback on the monetisation of the Ashok in the heart of Delhi, along with its vacant land for the development of a commercial block and serviced apartments.
According to CNBC TV18, Taj, Leela, Hilton, Andaaz, JLL and DLF, among others participated in the roadshow. Bidders sought a single monetisation bid for the Ashok along with the land parcels for development.
Transaction adviser Feedback Infra has suggested three modules for monetisation: Leasing out the Ashok Hotel built on 11.62 acres for 60 years to private parties under an operation, management and development (OMD) model.
The winning bidder may have to invest about Rs 450 crore to refurbish the hotel on the lines of global iconic hotels like the Ritz (Paris), the Savoy (London) and the Taj Mahal (Mumbai).
A second land parcel of 1.83 acres will be offered in the design-build-finance-operate-transfer (DBFOT) model on a 90-99 year lease to develop retail-cum-office space with a built-up area of 175,000 sq ft in an integrated building of 5/6 floors.
The third plot of 6.3 acres will be offered on a 90-99 year lease to build serviced apartments with a built-up area of 1.1 million sq ft, having 600-700 units under the DBFOT model.
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Currently, the Centre owns 87.03% in ITDC, Tata Group’s Indian Hotels Company (owner of Taj Hotels) holds a 7.87% stake, while 5.1% is held by others, including retail investors.