Taj Group wins bid for Connaught hotel in NDMC auction

The Tata Group’s Indian Hotel Company Ltd (IHCL) on Wednesday has won the bid for ‘The Connaught’ hotel in the e-auction conducted by New Delhi Municipal Corporation (NDMC).

IHCL submitted the highest price offer of 31.80 per cent of the Gross Turn Over (GTO). IHCL will have to pay either 31.80 per cent of the GTO or ₹5.868 crore per annum whichever is higher.

IHCL will get it for a 33-year lease.

After the completion of the technical evaluation of bids, the three successful bidders who qualified for the e-auction were Sarovar Hotels Private Ltd, Byke Hospitality Ltd and IHCL. The forward e-auction started at 24.50 per cent of the GTO and ended at 31.80 per cent of the GTO.

“The possession of the hotel would be given to the IHCL once all the formalities are completed by them. It would take maximum a month’s time,” said an NDMC official.

He added that the IHCL would be given nine months time to renovate the hotel.

The hotel has about 85 rooms, three banquet halls and a swimming pool.

Meanwhile, the other two hotels which are to be re-auctioned by NDMC are Taj Mansingh and Hotel Asian International. After the e-auction of the Taj Mansingh failed to get three bidders, which is a minimum requirement, the iconic hotel will now go under the hammer on July 18.

Source:-https://www.thehindubusinessline.com/news/taj-group-wins-bid-for-connaught-hotel-in-ndmc-auction/article24212615.ece

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