Prominent Investment & Hotel Chains in the Mix for Ten Hotels Bid
Leading hotel chains and real estate developers are reportedly in the fray for the purchase of Ten Hotels, a four-star hotel chain, and other real estate properties belonging to the challenged UK investment group, Dawnay Day, in India. At stake is a deal estimated at Rs 500-700 crore involving ITC, Royal Orchid, Pride Hotels, Sarovar group, Lemon Tree, DLF, and Paraswanath.
Uncertain Future for Ten Hotels' Indian Operations
When approached, Mandeep Lamba, Managing Director of Ten Hotels, revealed that the business restructuring is handled in the UK, adding, “Until I have reliable information, I cannot comment. Presently, our Indian operations are proceeding as usual with construction work on schedule for our hotels.” Lamba confirmed that the first Ten Hotel in Jaipur is set for completion later this year.
Strategic Bids Under Consideration
The involved hotel chains and real estate developers confirmed receipt of proposals from investment bankers. They are currently assessing their options. The group seeks an immediate investment of $20-30 million to sustain until a buyer is determined for the assets. According to an official from a Delhi-based hotel chain, fetching a decent price in the current real estate and hotel market slowdown could prove challenging.
Implications for the Indian Hotel Market
As the battle for Ten Hotels wages on, the outcomes could have implications for the Indian hotel market, particularly regarding future investments and trends in the luxury accommodation sector.