| Barely a day after acquiring Sea Rock Hotel, the Delhi-based Claridges has decided to invest Rs 150 crore for its renovation.
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| Sanjeev Nanda, managing director, Claridges Hotels and Resorts, said, “We are in talks with US-based designers for Sea Rock’s renovation. We expect to make the hotel fully operational in the next 18-24 months. The total investment for the work is pegged at Rs 150 crore.” As part of the renovation plans, Claridges intends to operate the revolving restaurant atop Sea Rock.
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| The Bombay High Court recently consented the Nandas to complete their 100 per cent acquisition of the hotel by paying Rs 132 crore to SB Luthria for his 30 per cent stake. The Luthrias promoted the hotel under the holding, Elel Hotels. Both the parties — the Nandas and the Luthrias — resolved the issue yesterday in an out-of-court settlement.
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| Sea Rock Hotel, at Bandra, has been lying idle since 1993, after it was hit by a bomb blast. Of its 432 rooms, only 40 rooms have been operational.
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| Claridges, in early 2005, bought 26 per cent stake from SB Luthria for Rs 40 crore and went on to buy 70 per cent from two other Luthria brothers, UB and GB, for Rs 130 crore. Claridges also paid Rs 40 crore to the ITC group, which used to operate the hotel, and which Elel Hotels, therefore, owed the amount to.
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| SB Luthria, however, pledged his 26 per cent share to Skydeck Properties through a power of attorney and also obtained an injunction against the sale of 70 per cent of brothers UB and GB to Claridges. His plea was that the shareholders in Elel Hotels should have the pre-emptive right to buy the Luthria brothers’ share before any outsider.
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| The Bombay High Court had asked Sky Deck Properties to submit a valuation report of the hotel. The court had given Claridges the first right of refusal to buy 30 per cent stake or sell its 70 per cent stake. |
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