Lalit Suri group to pick addl stake in Lalit Great Eastern

Group will buy 10% from West Bengal govt once the 172-year-old hotel is fully operational; pricing yet to be finalised

Lalit Suri Hospitality Group, which reopened its 172 years old heritage property in city of joy on Tuesday, will buy out additional 10 per cent stake in Lalit Great Eastern hotel from state government, once fully operational. Erstwhile Great Eastern Hotel, which has hosted guests to the likes of Mark Twain and Queen Elizabeth, now rechristened as The Lalit Great Eastern was reopened today after the group took over control from the former left front government in 2005. As of now the hospitality major has 90.10 per cent take in the heritage hotel while rest is with state government.

“According to the agreement, we will be buying out the rest of stake as well once the hotel is operational. Pricing and such details are yet to be finalised,” Jyotsna Suri, chairman and managing director of the group told reporters here.

Suri said the company has invested around Rs 375 crore so far into renovation of the 244 key hotel.
 

This amount includes the Rs 52 crore amount that was paid by the hospitality major to the then left front government led by Buddhadeb Bhattacharjee.  The decision to divest government's stake in the hotel— built in 1840 by a Briton, David Wilson — had faced stiff opposition from several quarters, including its own trade wing, CITU

Suri said while the group got control over the hotel in 2005, proper renovation work started in 2007.

“We took proper possession in March 2006 and started planning to renovate but we lost Mr Suri in November. We needed to make a car park so when we started digging it started  to damage heritage blocks so we had to chose other way. Tea lounge, legacy lounge and bakery is ready which is accessible from the street. Most of investment is already done and around Rs 20 crore will be invested.,” she said

While most of the licenses are in place, Suri feels in another two week's time the hotel should be ready for public. The hotel will have 195 rooms operational in the first phase. The heritage one will continue to see renovation done and should be ready in another six months.  Two tenants, however, continue to remain hesitant to leave the ground floor despite attempts from Suri. “We have already asked the state government for their help as well,” she added.  

On its Delhi Property being served a notice by the Delhi Pollution Control Committee (DPCC) , Suri said no closure notice was served with an immediate effect to the hospitality major and it has got six month extension from DPCC to install enhanced STP plant.

“There is no closure with immediate effect. Basically Delhi pollution control board wants certain things to be done and we have done most of it. However, there was a STP plant which we had to complete and we have got six month extension from them to do so. This is a  25 year building..the pollution board wanted an enhanced STP plant,” she said by adding that the Delhi property is graciously operating and  shall continue to do so.   

When asked about if any invitation was sent to left front party members who sold the hotel to group, Suri said it would have been 'inappropriate' to have current CM and erstwhile CM Bhattacharjee on same dais. However, she maintained she has high regards for Bhattacharjee as well.