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Taj group acquires Sea Rock for Rs 680crore |
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For years, two marquees of the Mumbai hospitality scene Sea Rock Hotel and Taj Lands End have stood facing each other in a cozy, sea-facing corner of the city`s Bandra suburb.
The Tata-run Taj group took under its wings the former in Rs 680-crore landmark deal, which has been virtually closed since bombs ripped through it in 1993.
The acquisition strengthens Taj`s position in the city, which now has a 1,425-room capacity in four properties. Though the hospitality sector is seeing less number of tourists checking in, the financial capital of India tops the average room revenue chart at Rs 10,000. Mumbai is the largest contributor to the Taj group`s revenues of over Rs 2,700 crore.
Taj plans to demolish the 440-room Sea Rock and redevelop the site into an integrated complex consisting of hotel rooms, a large convention centre and retail outlets housing well-known brands.
The Taj Lands End has 480 rooms. IHCL vice chairman R K Krishna Kumar said, "Within days of the Bandra-Worli sea link being to open, we are delighted to announce that we are able to propose a world class convention and hospitality centre that Mumbai so richly deserves."
Taj is funding the acquisition from the rights issue proceeds and internal accruals. The Sea Rock Hotel, spread over six acres of prime seafront, was bought by the Nandas of Claridges Hotel for Rs 330 crore in 2005 from the Luthria brothers, who started it in the late 1970s. Back then, Sea Rock had a tie-up with ITC hotels and was known as Sea Rock Sheraton.
The Nandas will continue their association with the Sea Rock, with a 25% stake. Krishna Kumar said the Taj group had the option to buy out their stake. This is the second time the Sea Rock was offered to Taj.
(Posted on : 16/06/2009)
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| Taj group acquires Sea Rock for Rs 680crore |
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