M&M arm buys assets of AGS Hotels

Mahindra Holidays and Resorts, part of the $4.5 billion Mahindra & Mahindra Group has expanded its footprints further, with the acquisition of assets of AGS Hotels in Tamil Nadu's most popular tourist destination - Ooty.

According to sources, Mahindras has signed the deal for around Rs 30 crore for the 100 room resort, in the heart of Udhagamandalam (popularly called Ooty), overlooking the race course. AGS Hotels, a subsidiary of erstwhile SSI Ltd, purchased this property from the Dasaprakash Group.In subsequent transactions, PVP Ventures, acquired SSI Ltd and consequently AGS Hotels came under its belt.

Videocon to foray into hospitality, hydropower

After foraying into the telecommunications and thermal power sectors, Venugopal N Dhoot, chairman and managing director (CMD), Videocon Industries today said the group is sewing up plans to enter into hospitality and hydropower. The company is in talks with the Uttarakhand government for various projects.

A five star hotel and construction of a Dehra Dun-Mussoorie ropeway are the immediate proposals of the company in the hill state. Besides this, Videocon is also interested in acquiring a heritage building in a Mussoorie hill resort.
Videocon is eyeing for ten acres of land for the construction of five or seven star hotel on the foothills of Mussoorie. An amusement park is also on the cards near the proposed hotel.

As far as hydropower is concerned, Videocon expects to produce nearly 2,000 mw in the first phase of the plan. Already, company officials have held talks with the top state government authorities. The company has also held talks with the Uttarakhand Power Corporation (UPCL) for selling the power.

Rahejas to enter hospitality sector with Indian Hotels

Delhi-based Raheja Developers will foray into hospitality sector with the Indian Hotels Company. The realty player will develop six hotels in four years.While four of these will be business hotels in Four-Five-Star category, two will be budget hotels

Rahejas will develop only one stand-alone hotel in Gurgaon while others will be part of their shopping complexes. The investment in the 300-room stand-alone business hotel will be to the tune of Rs 150 crore (excluding land price) with an additional cost of Rs 50 lakh for furnishing.

According to sources, the group has negotiated terms for a management contract with the Taj Group to develop two hotels — a 400-room business hotel in its mall in Gurgaon and another in Panipat.Raheja’s mall in Panipat, built at an investment of Rs 100 crore, will house Taj’s budget brand Ginger. However, Mr Raheja declined to comment on the development. Ginger does not have existing property in Delhi or NCR.

Read more in


The Economic Times article.

DLF to buy ultra-luxury Amanresorts for $250 mn

DLF, the country’s largest realty firm by market capitalisation at over Rs 1,48,527 crore,is acquiring the privately-held super luxury resorts and spa chain Singapore-based Amanresorts for around $ 250 million.The company had announced a month ago that it intends to raise $750 million overseas for acquiring and developing properties abroad. Part of the proceeds would be used for funding the Amanresorts acquisition.

Sources close to developments said at $250 million, the deal is being concluded at an extremely conservative valuation. In addition to this payout, DLF will assume debt of approximately $220 million as part of the deal.This will be the first overseas acquisition by India's largest real estate company, which recently went public.

The 20-year-old Amanresorts has 18 operational properties under its belt in Indonesia, Cambodia, Sri Lanka, Morocco, Bhutan, India, the Philippines, the United States, French Polynesia and France.

Read more in The Business Standard article.

Tourism finance plans $100 mn pvt equity fund

Tourism Finance Corp. of India Ltd (TFCI), which has funded the world’s top-rated spa, plans to sell shares and set up a $100 million (Rs393 crore) private equity fund to buy stakes in hotels catering to domestic travellers, its chairperson said.
The money for the seven-year fund will be raised from banks and high net worth individuals, Archana Capoor, chairperson and managing director, said. TFCI plans to sell new shares to select investors to more than double its equity capital.

TFCI has lent money to IHHR Hospitality Ltd, which operates the Ananda in the Himalayas, rated as the best destination spa this year by the readers of Conde Nast Traveller magazine. The spa resort is located 260km north of New Delhi. TFCI plans to sell new shares to increase its equity capital to as much as Rs150 crore from Rs67 crore, Capoor said. Directors will make a decision on 22 October, she said, without giving the number of shares to be sold.

Read more in The Livemint article.