Eros Group Bags Delhi Kanishka

In the most expensive and widely participated deal in the India Tourism Development Corporation (ITDC) divestment programme till date, Satish Sud of the Eros Group has emerged as the highest bidder for the 315-room hotel Kanishka in Delhi. While the reserve price for the property was set at close to Rs 70 crore, Sud had bid about Rs 96 crore. Eros group owns the Park Royal Intercontinental hotel in New Delhi.

The hotel attracted a record eight bidders including the Chaudharys of Nepal, who have a 50:50 joint venture with the Taj group called Taj Asia; the promoters of Taj Lanka; Lalit Suri of Bharat Hotels; the Munjals of Hero Honda, A L Batra, promoter of Radisson Delhi and Umesh Sarraf, owner of Grand Hyatt in Delhi.

 

When contacted, Sud confirmed that he had been declared as the highest bidder. He added that the total investment in the hotel, which would be positioned as a five-star hotel, would be to the tune of Rs 150 crore.

Sud said the hotel would be completely refurbished within a year and this would require an additional investment of Rs 35-40 crore.

The government also managed to sell its Indraprastha, formerly known as Ashok Yatri Niwas, property for Rs 45.03 crore to Mittals of the Kolkata-based Maru Trading Company.

The 546-room hotel property, which had a reserve price of Rs 18-20 crore, also attracted six bidders including the Eros Group, Sewa International and AB Kerkar promoted Tulip Hotels.

Kerkar had put in the second highest bid of Rs 45 crore through Oriental Structural Engineers.

The government had earlier offered the two properties as a single property but no bidder came forward.

The government then delineated the two properties to attract bidders and also to attract a better price on the basis of recommendations submitted by ITDC.

These properties had earlier attracted 20 and 18 expression of interests respectively.

With the completion of the third tranche of ITDC divestment today, the government has managed to sell 17 of its ITDC properties.

It has thus added about Rs 325 crore to its kitty.