It's shopping time for tobacco-to-hotels major ITC.
After lapping up domestic rights of foreign brands Savlon and Shower to Shower, ITC on Monday lapped up a hotel property in Goa in an auction sale by financial institution IFCI.
ITC said it has emerged as the highest bidder for Park Hyatt Hotel at Cansaulim in Goa belonging to Blue Coast Hotels during an auction under the provisions of SARFAESI, or the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
While ITC hasn't announced the bid price, the reserve price of the property was Rs 543 crore.
Apart from the location of the property at the international tourist destination, the deal gives ITC rights over a large tract of land of about 45 acre with a built-up area of 25,800 square metres and 500 metres of beach front.
The 250-key five-star deluxe Park Hyatt Goa Resort & Spa, promoted by P L Puri of Blue Coast, opened in 2002-03 at Arossim beach in Goa. The property has remained a popular destination, winning as recently in 2014 the Conde Nast Traveller's award for Favourite Leisure Hotel in India.
Blue Coast subsequently opened MGM Grand in New Delhi, Sheraton Chandigarh and Sheraton Amritsar.
Continued investments in these properties, Blue Coast later admitted, put a severe stress on financial resources of the company which also defaulted on interest payment to its debenture holders.
Following this, the debenture holders through SBI Cap Trustee Co filed a case in Goa for Rs 162.50 crore.
IFCI in 2013-14 initiated recovery proceedings under SARFAESI Act demanding Rs 135.15 crore out of which Blue Coast as upfront payment paid Rs 10 crore.
The financial institution however continued with its recovery procedure and in 2013 IFCI took possession of the property, which Blue Coast tried to prevent.
ITC, which currently operates more than 100 hotels, aims to invest close to Rs 10,000 crore over the next four years to have a portfolio of 150 properties.
It recently unveiled super premium property ITC Grand Bharat near Gurgaon along with a 27?hole Jack Nicklaus designed signature golf course.
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