itdc roadshow: IHCL, HLV Ltd, Hilton, Wyndham, DLF, JLL attend ITDC roadshow

The India Tourism Growth Company (ITDC), below the Union tourism ministry, held an “preliminary suggestions session” on Monday regarding the disinvestment proposal of Ashok Lodge and the utilisation of vacant and used land within the resort Ashok-Samrat complicated.

The session was attended by entities together with Tata Group-backed Indian Resorts Firm, Brookfield-backed HLV Ltd (previously Leelaventure), Hilton, EY, JLL, DLF and Wyndham Resorts & Resorts, folks aware of the matter mentioned.

The company had knowledgeable the BSE final week that it was planning to carry a roadshow to acquire the views of market gamers on the varied fashions recommended by transaction advisor Suggestions Infra in its feasibility report. The Division of Funding and Public Asset Administration-appointed Suggestions Infra had recommended dividing the positioning into 4 land parcels, with Samrat Lodge (4.73 acres) being retained by the ITDC.

The marketing consultant really helpful licensing Ashok Lodge (second parcel, 11.5 acres) for 30 plus 30 years on operation, administration and improvement mannequin. A 3rd parcel, comprising spare land unfold over 1.83 acres, could possibly be used for industrial improvement whereas the fourth parcel could possibly be a resort or serviced flats unfold over 6.3 acres, in response to Suggestions Infra.

Jaideep Dang, managing director, Resorts and Hospitality Group, South Asia at JLL mentioned buyers are “curiously exploring” methods to unlock the best and greatest use worth of this marquee asset.

“Other than the resort and serviced condominium blocks, which accurately kind a part of the identical subset of the hospitality phase, it is very important know the potential yields of complementary actual property improvement,” mentioned Dang. “Are you able to do a sizeable grade A workplace improvement? Are you able to do high of the road retail improvement, interspersed with F&B (meals and beverage) and cinema, as a result of New Delhi doesn’t have any new industrial inventory developing in a tony neighbourhood corresponding to this. If these queries are addressed properly, the investor canvas can be credible and the challenge can be one in every of its type.”

The entities collaborating within the session on Monday requested questions corresponding to whether or not all of the land parcels could be clubbed below one request for proposal, whether or not there can be eligibility standards based mostly on a sure pedigree for bidders and whether or not the lease tenure can change if a single celebration bids for all of the parcels.

The ITDC had mentioned on the outset that it wished to take trade’s inputs earlier than transferring ahead with the subsequent steps, mentioned the folks cited earlier.

“There have been questions in regards to the lease length. They’re anticipating a capital expenditure of Rs 450 crore on Ashok Lodge, which has 550 keys, and proposal for serviced flats is 600-700 items,” an trade govt, who attended the session, mentioned on situation of anonymity. “So, if a single entity bids, may there be a combination and match? May the items and the tenure change? Would they get that flexibility? Will they put a test and a filter on who all can bid? These had been a few of the questions raised on the session.”

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