Monday, May 28, 2007

Temasek arm to pick up 21.74% in GL Hotels

Dunearn Investments (Mauritius), a wholly-owned subsidiary of Asia investment firm Temasek Holdings, is acquiring a 21.74% stake in GL Hotels for Rs 125 crore. Mumbai-based GL Hotels, promoted by the Ghais of the Kwality and Gaylord restaurant fame, now operates the boutique Intercontinental (IHG) Marine Drive in south Mumbai.

It is foraying into boutique and lifestyle hotels and is understood to be talking to a number of global hospitality majors for the same.

The board of GL Hotels recently cleared its expansion plan for the next 3-5 years involving a first phase investment of around Rs 600 crore. To fund the first phase, GL Hotels approved the issue of warrants to Dunearn Investments to raise Rs 210 crore and an additional Rs 400 crore would be raised through debt and internal accruals.

After the recent amalgamation of its banqueting business( Mayfair) with GL Hotels, IHG’s stake has reduced to around 5% from 12% in GL Hotels.

Read more in The Economic Times article.

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