Unitech Ltd, the country's second largest real estate firm, has decided to sell its 200-room budget hotel Courtyard by Marriott in Gurgaon ahead of its inauguration in January 2009.
Industry sources said the transaction is valued between Rs 250 crore and Rs 300 crore and the realty firm is talking to leading hotel chains and some high net worth individuals.
Confirming the development, Unitech Managing Director Sanjay Chandra said the sale was part of the original plan. "Our intention is to build, develop and sell these properties at the right time," he said, adding, "We will stay focused on real estate, which is our core area of operation."
The sale of the Gurgaon hotel comes at a time when the hotel business has slowed considerably, with October being one of the worst months in the recent past. Unitech invested Rs 100 crore on this project including Rs 10 crore for the real estate.
The company is also selling a 225,000-square foot office building in south Delhi for around Rs 500 crore. Some north India-based government banks and a Mumbai corporate house are possible buyers.
The company, however, is discussing a lease deal with a multinational. "If the company manages to rent the entire building, then it is easier to find buyers at a much higher valuation," said a senior company official.
Unitech planned to set up 28 hotels under various categories. It had signed alliances with Marriott, Carlson, Ritz Carlton and Country Inn and tied up the management of 10 hotels.
Apart from Courtyard by Marriott, Unitech has tied up with Marriott for another hotel in Gurgaon and one each in Kolkata and Noida in the four- or five-star categories.