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    Royal Orchid Hotels considering sale of Jaipur hotel, land parcels in Mumbai, Tanzania

    Synopsis

    The chain is looking at getting investors for its loss making assets. It is looking for a buyer for its hotel in Jaipur which is loss making and has debt and the land parcels. Chairman and managing director Chander K Baljee said we planned to build a hotel in Powai but we got into the asset light mode and dropped the plan of constructing one.

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    NEW DELHI: Royal Orchid Hotels, which runs over 60 hotels across 38 locations in India across categories is looking at selling its loss making, debt laden assets and land parcels in locations like Mumbai and Tanzania, people familiar with matters said.

    The company is planning to sell its stake in the five star hotel in Jaipur besides land parcels in Powai and Tanzania, these people said.

    "The chain is looking at getting investors for its loss making assets. It is looking for a buyer for its hotel in Jaipur which is loss making and has debt and the land parcels,” a person said.

    In a response to ET’s queries, chairman and managing director Chander K Baljee said the company is looking for buyers for its land parcels in Powai and in Tanzania.

    “We planned to build a hotel in Powai but we got into the asset light mode and dropped the plan of constructing one,” said Baljee.

    “We are actively looking at selling our land and are in touch with buyers. We are looking at buyers for the parcel in Tanzania as well. Our partner wants to sell his share in the Jaipur hotel. We are not looking at selling our stake,” he added.

    People familiar with the developments said the chain has a 50% stake in the Jaipur hotel and is hoping that it will sell for around Rs 160 crore.

    Royal Orchid has hotels in locations like Bengaluru, Navi Mumbai, Pune, Goa, Ahmedabad, Chennai and Kolkata and reported consolidated revenues of Rs 203.83 crore in financial year 2018-19.

    People familiar with matters said the chain hopes the sale of the hotel and the land parcels will generate around Rs 240 crore overall.

    Baljee said things had started improving but with lockdowns getting reinstated in some states it is back to square one.

    "A lot of our hotels were coming to a break even and now this month we may again slip into the red but we are hoping from next month onwards we reach an operational break even. From October onwards, business should come back to normal.”


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