Viceroy Hotels (VHL) said on Monday that it is looking to hiveoff its Rs 560-crore Chennai project into a separate company to cut debt on its balance sheet.
“Hiving off the Chennai project division will help reduce debt from the books of VHL. The company is building a luxury hotel property in Chennai, which has a total debt of around Rs 450 crore,” the VHL Company Secretary, Mr P Lenin Babu, told PTI.
A meeting of the Board of Directors of the company will be held on March 26 to consider hiving off the Chennai Project Division, VHL said in a filing on the Bombay Stock Exchange. Mr Babu said the Chennai property will have a total of 387 rooms.
It started construction in 2005 at an initial cost of Rs 490 crore, which was later revised to Rs 560 crore.