Viceroy Hotels sells Chennai project to Ceebros for $88M

Hyderabad-based Viceroy Hotels Ltd, which develops hotels and restaurants, has decided to sell its ‘Chennai Project Division’ which includes its hotel and residential project in the city to Ceebros Hotels Pvt Ltd for Rs 480 crore ($88.5 million), according to a stock market disclosure.

The hotel project is being developed under the JW Marriott brand. Viceroy Hotels had struck a deal two years ago to sell the hotel project to Mahal Hotel Private Ltd while the residential project was to be sold to Esteem Housing Developers Pvt Ltd. The total deal was worth Rs 500 crore of which Rs 480 crore was for the hotel project and the rest for the residential project. The new deal has been struck at a marginal discount to the original proposal.

Earlier the firm had completed slump sale of ‘Bangalore Project Division’ to Viceroy Bangalore Hotels Private Ltd. This entity saw an investment of Rs 90 crore from JP Morgan India Property Mauritius II which picked 60 per cent stake in the firm in July 2011.

Apart from these projects, Viceroy Hotels also owns luxury, business and comfort hotels in Hyderabad, Bangalore and Vizag operated by luxury player Marriott under the brands JW Marriott, Renaissance and Courtyard.

The company also owns various restaurants operated under the brands Blue Fox, Minerva, Waterfront and Eat Street. In addition, it owns BreadTalk, a boutique bakery, which has more than 200 outlets in nine countries. The outlets include those in Hyderabad, Mumbai, Bangalore and Gurgaon in India.

Viceroy Hotels had clocked revenues of Rs 110.5 crore with a net loss of Rs 2.2 crore in FY12. For the first nine months of FY13, it recorded revenues of Rs 83 crore with a net loss of over Rs 5 crore. Last October, Rakesh Jhunjhunwala had quit the board of the firm. The ace market investor holds 14.5 per cent stake in Viceroy Hotels.

Ceebros Hotels is a part of Chennai-based Ceebros Group, which owns and operates eco-friendly Rain Tree Hotels in the city besides its real estate business. Ceebros Group also has interests in renewable energy sector.

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