Kamat Hotels to sell Vits for 190 cr.

Kamat Hotel

India’s hospitality industry has been melancholic for the past few years due to the economic slowdown that hit both business and leisure travel. Quite a few hotels ran into losses amid falling check-ins and declining room tariffs, forcing their management to restructure their debts by selling off assets.

The latest entrant, VITS, launched in 2007, is a fourstar business hotel located on the Andheri-Kurla Road in the vicinity of Mumbai airport to join the sell off. Kamat Hotels has put the VITS property up for sale since April last year as part of its corporate debt restructuring plan. “We were forced to sell the property as the business was running into the red”, confirmed a source familiar with the development.

Kamat Hotels was hoping for an an outright deal of the property expecting something in the region of Rs. 275-300 crore. But buyers are willing to offer only about Rs. 200 crore for it. The Group has also put its 48room Lotus Beach Resort in Benaulim, Goa, on the block and expects to get about Rs . 40 crore for the property.

Hotel Leelaventure , the luxury hotel chain too is selling properties in Chennai and Goa to trim debt.