DB Realty to acquire stakes in three hotels for Rs 2,300 crore, ET RealEstate

September 26, 2023

NEW DELHI: DB Realty has entered into separate share purchase agreements to acquire shares of Bamboo Hotel Global Centre (Delhi) (Bamboo Hotel), Goan Hotels & Realty (Goan Hotels) and BD And P Hotels (India) (BD and P) for Rs 2,300 crore, the company said in a BSE filing.

Bamboo Hotel, a joint venture between Prestige Hospitality Ventures and Marine Drive Hospitality & Realty (MDHRPL), is constructing a hotel complex comprising of the St. Regis and the Marriott Marquis with total of 990 Bays, a large conferencing facility of 200,000 sq. ft and approx. 6.15 lakh sq ft of leaseable office/business centre at Aerocity, New Delhi.

The property is leased out by Delhi International Airport (DIAL) to Bamboo Hotel for an overall period of 57 years including the lease extension of 30 years. The total built-up area of the project is approx. 3.3 million sq ft.

DB Realty will purchased 10,10,000 Class A equity shares (i.e. approx. 50%) from the existing shareholders of Bamboo Hotel- 7,67,600 Class A equity shares from MDHRPL, an entity in which 15.53% of the equity share capital held by the company and 74.93 % of equity share capital held by promoters/promoter group/KMPs of the company and their relatives and enterprise controlled by them and 2,42,400 Class A equity shares from Goan Hotels & Realty (GHRPL), a wholly-owned subsidiary company of MDHRPL. 10,10,000 Class A equity shares will be acquired for total consideration of Rs. 608.88 crore.

The company which is into real estate and construction business plans to expand its business into hotel/hospitality business segment. “the hotel business will provide stable annuity income to the company in order to pursue its expansion plans,” it said in the regulatory filing.

Goan Hotels, a wholly-owned subsidiary of MDHRPL, owns a five-star hotel under the brand of Grand Hyatt Goa (GHG), at Bambolim, Goa. GHG is spread over 27 acres of water facing freehold land. The company will purchase 78,250 equity shares from MDHRPL/its nominees, existing shareholder of Goan Hotels for total consideration of Rs 1,410.68 crore.

BD and P, subsidiary of MDHRPL, holds 75% equity stake and owns the Hilton Mumbai International Airport. The company will purchase 2,12,69,325 equity shares (i.e approx.75%) from MDHRPL, existing shareholder of BD and P for total consideration of Rs. 339.12 crore.

  • Published On Sep 26, 2023 at 09:15 AM IST

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