Saraf Group Plans Hotels In Mumbai

The Hong Kong-based Saraf Group of Industries, that runs several hotels in India and Nepal, plans to develop hotels in Mumbai.

Apart from Hotel Grand Hyatt Mumbai, it is also negotiating with an Indian company to acquire 50 per cent stake for developing another five-star hotel in Mumbai.

In the Indian company, Seajuli Property & Viniyog Ltd, the remaining stake will be picked up by Mauritius-based Two Seas Holdings Ltd (TSHL). The 455,00 sqft land in Santacruz, Mumbai, where Saraf Hotels Ltd (SHL), part of the Saraf group, and TSHL, plan to build a 650-room five-star hotel, belongs to Seajuli Property.

 

TSHL will be investing Rs 20.62 crore to acquire 37,50,000 equity shares of Seajuli at an average price of Rs 55 per share. Saraf Hotels Ltd, part of the Saraf group, will invest an equal amount bringing the total foreign equity investment to Rs 41.25 crore.

The present activities of Seajuli Property and Viniyog Ltd is to borrow and lend money which they propose to discontinue after the takeover by Sarafs and TSHL.

Acquiring of the land belonging to Seajuli by the Saraf through Mauritius-based Saraf Hotels Ltd will the company a sizeable presence in the hotel industry in India.

The Sarafs have already undertaken the development work on a 10-acre site in Mumbai's Santa Cruz where they plan to have 650-room property.

This hotel will have 100 suites, too. Hyatt International will operate this property as Grand Hyatt Mumbai and the total project cost is estimated to be $158 million. The actual construction is slated to start sometime in the fourth quarter of this year.