IHCL identifies properties for buyout possibility
The hospitality group is attempting to reduce its debt
The Indian Hotels Company (IHCL) and its Singapore-based partner GIC have reportedly lined up seven to eight hotel properties for a possible buyout.
A few months ago, IHCL created a platform (worth US$600 million) with Singapore-based wealth fund GIC to acquire operational hotels in India’s luxury segment.
According to a report by moneycontrol.com, Puneet Chhatwal, IHCL’s MD told analysts that the group is now in the process of identifying a list of seven to eight assets, including “several distressed” ones.
Chatwal said that the company was looking forward to be able to announce the buyout of at least one asset within the next three months.
The group is currently attempting to reduce its debt that stands at INR1,975 crores (net debt) to less that INR1,000 crore.
According to reports, IHCL could even look at its own properties for acquisition but is currently refraining from doing so as the market in India is slow.