GMR moves to sell Hyderabad hotel property

The GMR group, as part of its asset light strategy, is now looking for buyers for its hotel property at Rajiv Gandhi International Airport here under the Swiss Challenge model, it said in an exchange filing today.

The GMR Hyderabad International Airport (GHIAL), a step-down subsidiary of GMR Infrastructure (GIL), had initiated the process of divesting its equity stake in GMR Hotels and Resorts (GHRL), which owns and manages the Novotel Hyderabad Airport Hotel, in 2013-14 itself.

According to experts, the sale of such a property would fetch anywhere between Rs 300-400 crore.

"However, as no binding agreement could be reached with any of the bidders, GHIAL could not conclude the divestment process. In the meantime, GMR Airports (GAL) had offered to acquire the GHIAL's stake in GHRL. The board of GHIAL could not decide on the offer and suggested bidding process under the Swiss Challenge method," it said.

"Based on suggestions of the board of directors, GHIAL has now recommenced the bidding process under a Swiss Challenge method, wherein the price offered by GAL earlier would be the floor price," GMR said in the filing.

Earlier, the infrastructure major had appointed HVS India to find a suitable buyer for the 5-star hotel currently being managed by the Accor group.

The Andhra Pradesh government in 2007 had allotted nearly 5,000 acres to GMR group to construct a greenfield airport and other amenities, as part of which, GMR constructed the 305-room hotel.

According to analysts, the valuation could be anywhere near Rs 1 crore per room under the current circumstances.