Twenty-two entities, including Indian Hotels and DLF, have shown interest in bidding to develop and manage The Ashok, a 5-star hotel in the heart of the national capital owned by the Indian Tourism Development Corporation (ITDC), CNBC-TV18 has reported.
Sources told the channel that apart from Tata Group backed-Indian Hotels Company and real estate developer DLF, Taj, Hilton, JLL and Andaaz were among those who participated in the monetisation roadshow.
The Ashok and the neighbouring Hotel Samrat are two of the eight ITDC properties included in the National Monetisation Pipeline (NMP) unveiled by Union Finance Minister Nirmala Sitharaman in 2021.
ITDC, a PSU under the Union Tourism Ministry, will seek investor feedback on the monetisation of The Ashok's vacant land as well, and successful bidders may be allowed construction of service apartments and convention centres. However, for any building to get constructed, the bidder will need to have a set of approvals.
Joint ventures (JVs) and private equity (PE) investors partnering with real estate players, too, can participate in the bidding, the report, citing sources, said.
After the options given by the bidders in roadshows are submitted, ITDC will seek the cabinet's nod for The Ashok's monetisation.
As per the monetisation plan, the first 11.62-acre property parcel, where the hotel is located, will be operated by private parties under the PPP operate-manage-develop (OMD) model for 60 years.
According to the design-build-finance-operate-transfer (DBFOT) approach, the hotel's second 1.83-acre land parcel will be controlled by private parties for 99 years.
ITDC shares closed 3 percent higher at Rs 403 on the National Stock Exchange.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
