The Hindu Business Line : Great Eastern handed over to Bharat Hotels chain

CHECKING IN: Mr Lalit Suri, owner of Bharat Hotels Group and Rajya Sabha MP, viewing a poster on the history of Great Eastern Hotel at its premises in Kolkata on Wednesday. — A. Roy Chowdhury

Kolkata , Nov. 30

THE West Bengal Government on Wednesday formally handed over Great Eastern Hotel to the Bharat Hotels Group controlled by Mr Lalit Suri. The development marks a significant step in the State Government's efforts to divest from its loss-making enterprises.

Mr Suri on Wednesday handed over a demand draft for Rs 52 crore to the State Government and acquired 90 per cent of the equity stake in the hotel. The State Government will retain the balance stake for at least the next three years.

A few days ago, The Grand Hotels, a unit of Bharat Hotels Ltd, was declared the successful bidder for 213-roomed Great Eastern Hotel, the reserve price for which had been pegged at Rs 47.40 crore.

Speaking to newspersons, Mr Suri said the hotel's new seven-member board of directors had four members from his family. There was one nominee representing the State Government as well. Bharat Hotels Group would pump in a further amount of Rs 120 crore for renovation and refurbishment of the heritage hotel, whose façade would remain unchanged. A consultant would soon be appointed for the hotel's renovation.

Mr Suri said the name of the hotel would be changed to The Grand Great Eastern Hotel. It would be developed as a five-star deluxe property. It was the eighth property in the Bharat Hotels chain and the third in its heritage category. It would be partially operational within the next one year and fully operational within the next two years. When fully operational, the hotel would employ around 300 people, Mr Suri said, adding that employees working in the hotel earlier could be engaged "depending upon merit."

All the employees of the hotel, numbering around 425, have been brought under a voluntary retirement scheme that has been funded by the Department for International Development of the UK. The State Government has stated that all employees' dues would be cleared by December 15.

Later in the evening, Mr Suri paid a courtesy visit to the Chief Minister, Mr Buddhadeb Bhattacharjee.

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