The 217-room 5-star hotel located near Bengaluru's Kempegowda International Airport that is owned by Lulu Group's hospitality arm Twenty14 Holdings and is being developed to be operated by Marriott International is on the market for about INR 400 crore. While a private equity firm has bid INR 350 crore, an additional INR 40-50 crore is required to complete the project that is currently 75% finished. The sale is expected to close within two months and comes as the Lulu group looks to reduce debt from its rapid expansion in recent years which has caused delays in completing some hotel projects.
A 217-room 5-star hotel located near Bengaluru airport owned by Abu Dhabi-based Twenty14 Hotels India Pvt. Ltd is on the market for about INR 400 crore. Multiple sources said that while a private equity firm has expressed interest in purchasing the property for INR 350 crore, an additional INR 40-50 crore would be needed to complete construction as it is only 75% complete. The deal is expected to close within two months as per sources.
The hotel will be operated by Marriott International. The 20-year lease agreement between Lulu Group and Marriott Hotels will remain even if the property changes ownership.
Strategically located near Kempegowda International Airport alongside two other Marriott hotels - Bloom and Moxy hotels, the property's sale is attracting interest from investors. The hospitality investment arm of LuLu Group International, Twenty14 Holdings, had earlier announced that the hotel would open in 2019. However, mounting debt from rapid expansion in recent years has caused delays in construction.
CareEdge reported Lulu Group secured 20-year management contracts with Marriott for its Kochi and Bengaluru airport hotels. One Kochi hotel is part of Marriott Tribute Portfolio, India's first Tribute hotel. It also partners with Hyatt for another Kochi hotel.
In India, Lulu Group owns six more hotels, including one in Bengaluru and five in Kerala, including the Grand Hyatt Kochi Bolgatty. Additionally, construction is underway for four other hotels. It had planned USD 1 billion in investments over 6 years. Half of this amount was earmarked for acquisitions in Europe, and the remaining was allocated across India, the Middle East, and far Eastern nations. The company is also pursuing other hotel projects in Dubai, the UK and Oman.
Advertisement
Facebook
Whatsapp
