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With an offer of ₹515.44 crore, ITC Ltd has emerged the “highest bidder” for the Park Hyatt Hotel at Cansaulim in Goa.
The bid value is equivalent to the reserve price set by the lender, IFCI Ltd. The auction was initiated under the SARFAESI Act, 2002.
In a communication to the stock exchanges, ITC said IFCI had informed the company that it had been declared the highest/successful bidder for the property.
An IFCI notification said ITC has already remitted 25 per cent (approximately ₹129 crore) of the bid value. The residual 75 per cent will be paid within 15 days.
The PL Suri-controlled Blue Coast Hotels Ltd, which owns the Park Hyatt Hotel, had a debt of ₹228.11 crore as of March 31, 2014. The company has been in the red since March 2011 and had defaulted on loan repayments to IFCI.
As of March 2014, the Suri family had a 43.46 per cent controlling stake in Blue Coast. Of the promoters’ stake, nearly 97 per cent was pledged with the lenders. Apart from Park Hyatt Goa Resort & Spa, it also owns MGM Grand New Delhi, Sheraton Chandigarh and Sheraton Amritsar.
The sale of the hotel in Cansaulim saw Blue Coast’s shares rise 4.93 per cent to ₹63.90 on the BSE, on Monday. ITC’s shares were down 1.45 per cent at ₹390.15.
Failed attemptsIFCI has been trying to auction the 250-room luxury hotel in Goa, spread over 45 acres, since 2013.
After two failed attempts fresh bids were invited in December 2014.
ITC operates hotels under four brands: ITC Hotels (luxury), Welcom Hotel (5-star segment), Fortune (mid-market to upscale) and Welcom Heritage (heritage leisure).
Mayank Saksena, Managing Director, Land Services, JLL India, said the recent improvement in average revenues for hotels, coupled with increased occupancy, has seen renewed interest from various operators in acquisitions.
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