GMR may sell 5-Star hotel at Hyderabad Airport
Infrastructure builder GMR Group has put its Rs 300-crore five-star hotel at the Rajiv Gandhi International Airport here up for sale as it realigns its assets, sources said.
Hyderabad: Infrastructure builder GMR Group has put its Rs 300-crore five-star hotel at the Rajiv Gandhi International Airport here up for sale as it realigns its assets, sources said.
This will be the third property that GMR has put on sale this year in line with the group's 'Asset Light, Asset Right strategy'.
While a GMR spokesperson denied selling the five-star hotel, sources with direct knowledge of the issue said the company has appointed HVS India as its transaction advisor.
HVS India has been mandated to find a suitable buyer for the 5-Star Hotel which is currently managed by Accor Group, sources said.
"The transaction would be by way of parent company divesting its 100 percent equity stake in the Hotel Company. The proposal envisages transfer of all assets and liabilities and a Share Purchase Agreement shall be executed accordingly," a source said.
An industry expert said the sale of the property may fetch anywhere between Rs 300-350 crore.
GMR entered into a concession agreement with the Andhra Pradesh government in 2004 to develop a Greenfield airport and other related infrastructure. As part of the airport project, GMR constructed the 305-room hotel.
The concession period will be for 30 years and extendable to another 30 years.
"As the land is leased, the same will be transferred to the new owners on the same terms illustrated in the concession agreement for the airport development," the source said.
According to analysts, the valuation of the hotel could be anywhere near Rs 1 crore per room under the present circumstances.
A person who had sought information from HVS, said the consultants are currently inviting interested parties to send their background, financial capabilities and other relevant data.
"They may ask the bidders to sign non-disclosure agreement before sharing details of the hotel. Subsequently they will ask interested parties them to submit bids also by the end of this month," he said.
Earlier this month GMR said it will sell its 70 percent stake in GMR Energy (Singapore) Pte (GMRE) to FPM Power for SGD 660 million (Rs 2,907 crore).
Similarly, it signed a pact with Macquarie SBI Infrastructure Investments Pte and SBI Macquarie Infrastructure Trust to divest 74 percent stake in GMR Jadcherla Expressways Ltd (GJEL) for Rs 206 crore.
GJEL is operating the Farukhnagar-Jadcherla highway in Andhra Pradesh under a concession agreement signed with NHAI.