IL&FS investment arm, IIML is re-evaluating its stake in DB Hospitality.
Sources tell NDTV that its PE partner, IL&FS investment manager, is reviewing value of its stake in DB Hospitality, after investing nearly Rs 100 crore in 2006 and picking up 10 per cent stake in the hotels segment. But now they are assessing their entire value and could look for an exit at Rs 200 crore.
Project delays are making these assets unviable and hence ILFS could exit but the big question is will they find buyers?
This is a view that could have been from the DB Hotel at Marine Drive in South Mumbai but with the group facing cash crunch, this project is delayed along with others which are yet to see the completion deadline.
DB Hospitality owns Grand Hyatt (Goa), Hilton (Mumbai), Le Meridian (Ahmedabad) and operates 900 rooms in 4 hotels. But with 8 hotels under construction in 5 cities, experts feel that DB hospitality is a bottomless jar where money will keep flowing out.
“DB hospitality right now will take easily 6-7 yrs to break even, it doesn’t have the wherewithal to finish its projects,” said Ashwini Kakkad, executive VC at Mercury Travels.
But with the group's promoters out of judicial custody, there could be a turn around. But will that need a five star performance to turn the fortunes around for the company.
IL&FS investment arm, IIML is re-evaluating its stake in DB Hospitality.
Sources tell NDTV that its PE partner, IL&FS investment manager, is reviewing value of its stake in DB Hospitality, after investing nearly Rs 100 crore in 2006 and picking up 10 per cent stake in the hotels segment. But now they are assessing their entire value and could look for an exit at Rs 200 crore.
Project delays are making these assets unviable and hence ILFS could exit but the big question is will they find buyers?
This is a view that could have been from the DB Hotel at Marine Drive in South Mumbai but with the group facing cash crunch, this project is delayed along with others which are yet to see the completion deadline.
DB Hospitality owns Grand Hyatt (Goa), Hilton (Mumbai), Le Meridian (Ahmedabad) and operates 900 rooms in 4 hotels. But with 8 hotels under construction in 5 cities, experts feel that DB hospitality is a bottomless jar where money will keep flowing out.
“DB hospitality right now will take easily 6-7 yrs to break even, it doesn’t have the wherewithal to finish its projects,” said Ashwini Kakkad, executive VC at Mercury Travels.
But with the group's promoters out of judicial custody, there could be a turn around. But will that need a five star performance to turn the fortunes around for the company.
