Oriental Hotels, an associate of Tata group firm Indian Hotels Company (IHCL), Friday announced the sale of its Gateway Hotel Beach Road, Visakhapatnam to Varun Group for an undisclosed amount.
The management and the overall operations of the hotel will continue to be with IHCL, while the hotel undergoes extensive renovation and enhancement, Oriental Hotels said in a statement.
Commenting on the development, OHL MD & CEO Pramod Ranjan said: "This sale will bring down OHL's debt significantly".
The transaction is in synergy with IHCL's pivotal business strategy, Aspiration 2022, aimed at unlocking higher value from efficiencies through a three-pronged strategy of restructuring, reengineering and reimagining the company's portfolio, he added.
"We are happy to partner with IHCL which will continue to manage this hotel for us and we look forward to a fruitful relationship, ensuring the best possible growth for the hotel," Varun Group Chairman V Prabhu Kishore said.
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