The Hindu Business Line : Claridges gains full ownership of SeaRock Hotel

THE Claridges Hotels and Resorts would assume full ownership of the 410-room SeaRock Hotel in Bandra, following a settlement reached with mutual consent at the Mumbai High Court on Tuesday.

The Claridges Hotels and Resorts, which already has 70 per cent stake in the hotel, would buy the remaining 30 per cent stake of the S.B. Luthria group at a valuation of Rs 132 crore.

An official statement quoting Mr Suresh Nanda, Chairman, The Claridges Hotels and Resorts, said: "The litigation around the SeaRock Hotel has reached an amicable settlement. We plan to relaunch SeaRock Hotel as a luxury hotel. This acquisition substantially expands our footprint in India's most lucrative market."

Before the settlement was reached, the court was told that Mr S.B. Luthria had already entered into an agreement to sell the S.B. Luthria group's stake in Elel, another group company, to Sky Deck Properties and Developers Pvt Ltd of Vicky Oberoi, the statement said.

The settlement was arrived at after both The Claridges Hotels and Resorts and Sky Deck jointly filed consent terms at the Mumbai High Court on September 12 under which Sky Deck was added as a party to the suit and it was agreed that Sky Deck would nominate an enterprise value for 100 per cent ownership of SeaRock. The Claridges Hotels and Resorts would then have the option to buy the remaining 30 per cent stake or sell its current 70 per cent stake, the statement said.

The SeaRock Hotel was valued at Rs 450 crore.

Earlier, on March 18, 2005, The Claridges Hotels and Resorts had purchased 70 per cent stake of the SeaRock from the previous owners, Sheena and Excalibur owned by the Luthria brothers (Mr U.B. Luthria and Mr Girdharilal Luthria) for Rs 135 crore. Prices have considerably appreciated since.

Under the consent terms, a 60-day payment period was agreed upon and a default would result in sale at a reduced price.

The settlement would also result in 100 per cent ownership by ending all property-related disputes and nullifying all prior stay orders or injunctions.

According to the statement, The Claridges group plans to expand to other centres such as Bangalore.

The group currently has properties in New Delhi, Mumbai and Nabha in Mussoorie.

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