The Hindu Business Line : TajGVK buys Chennai hotel property for Rs 32 cr

Mr G.V. Krishna Reddy (right), Chairman, TajGVK Hotels and Resorts Ltd, with Mr Anil P. Goel, CFO, at a press conference in Chennai on Monday. — Bijoy Ghosh

Chennai , Dec. 20

TAJGVK Hotels & Resorts Ltd, a joint venture between Indian Hotels Co Ltd (a Tata group company) and the Hyderabad-based G.V.K Group, has acquired a hotel property, off arterial Anna Salai, in Chennai for Rs 32 crore.

Mr G.V. Krishna Reddy, Chairman, TajGVK, said that the company decided to invest in Chennai as there was a lot of potential for growth in the city.

The 212-room property, which is located between Club House Road and Woods Road, covering 1.5 acres, has been lying unfinished for some time. The work on the property, which was owned by Sri Tripurasundari Hotels Ltd., started in 1994.

Mr Reddy said that the hotel too would be upgraded to five star status and there would be 200 rooms. The company planned to invest an additional Rs 100 crore for upgradation work. The hotel would provide for car parking in the basement. It would be operational by 2006, he said.

The acquisition of the hotel in Chennai is in tune with TajGVK's thrust to diversify geographically. This is the second hotel to be acquired after the 152-rooms, five-star hotel in Chandigarh during 2002-03, Mr Reddy said.

In Hyderabad, the company has three hotel properties — The Taj Krishna, a five-star deluxe hotel, the Taj Residency and the Taj Banjara. TajGVK currently has an inventory of 527 rooms in Hyderabad.For further growth, TajGVK is looking for properties in Mumbai, Delhi and Bangalore.

During the first half of the current financial year, TajGVK has reported a 37 per cent increase in operating revenues at Rs 49.36 crore against Rs 36.16 crore for the same period in the previous year

More Stories on : Mergers & Acquisitions | Hotels | Tamil Nadu

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