LuLu group puts 217-room Marriot on block for ₹400 crore

livemint.com:

₹2 crore per room, or an estimated ₹400 crore, at least three people aware of the matter said. While a private equity fund has expressed interest, and is willing to pay ₹350 crore for the property, an additional ₹40-50 crore will be required to complete the construction, said two of the three people cited above. The construction is 75% complete, and the hospitality firm expects to finalize the deal within two months, they added.

Twenty14 Holdings, the hospitality investment arm of LuLu Group International, founded by Adeeb Ahamed, had earlier announced that the hotel asset, which will be operated by Marriott International, would be ready by 2019. However, Twenty 14 Holding's mounting debt resulted in a delay, the people said. “They have grown too fast in the last few years, and that is the reason they are in debt.

To offload their debt, they are looking to sell this asset. The buyer is looking to pick up the asset for around ₹350 crore, and may have to pay a little more for the fit-outs," said the third person, a consultant. Last week, PE firm Blackstone had announced that it was evaluating two assets in south India for ₹300-400 crore.

Queries sent to the company did not elicit any response till press time. To be sure, the Lulu Group's 20-year-plus lease agreement with Marriott Hotels, will not be affected, even in the event of a change in ownership of the hotel property. The hotel is strategically situated in a hospitality hub near Kempegowda International Airport, alongside two other Marriott International-operated establishments: Bloom and Moxy hotels.