Brigade Enterprises is in focus post NCLT approving a scheme of arrangement of various hospitality assets. The market is likely reading this as an opportunity to bring in an investor in the hospitality business.
Confirming the market sentiment, Nirupa Shankar, Director, Brigade Hospitality said, the idea is to expand the hospitality business which could entail bringing in an investor.
Currently, the company is looking at offloading a minority stake but valuations will depend on the kind of investor/ partner and how they plan to value existing hotels etc. said Shankar.
This was the first step towards making the model investor friendly and the company is hoping to close in on an investor in FY19, she said.
The company has received some amount of interest but nothing has been finalised, she said, adding that hospitalisation is a long-term business with gestation period of 7-10 years and will surely be profitable over a period of time.
However, she clarified that all the properties are cash profitable but with depreciation, interest payments etc it won’t be profitable for many years, said Shankar.
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