An edited version of this story first appeared in DNA Money edition on Saturday May 14, 2011.
Delta Corp has acquired a controlling stake in Daman Hospitality Pvt Ltd (DHPL), which is setting up a five-star deluxe hotel in the Union Territory (UT) of Daman near the west coast in Maharashtra. The BSE-listed company (Delta Corp) paid Rs 50 crore to acquire 51% in DHPL which is an Indian affiliate of New York-listed gaming, entertainment and hospitality company Thunderbird Resorts Inc. The hotel is to be branded and managed by Thunderbird Resorts once operational by 2011 end.
Industry sources said the acquistion is very likely a distress deal considering DHPL has been struggling to get funding for project completion. With considerable portion of the work completely already last year, the hotel was to start receiving guests in September 2010. However, the opening got delayed and what's further intersting is that, the DHPL management had already hired all the manpower required for running the property - most of them have been sitting idle for almost a year now.
Officials from both Delta and Daman Hospitality were not available for a comment. Queries emailed to Thunderbird official did not elicit a response. In a company notification to the exchange, Delta Corp, said, 'Construction of the hotel is substantially completed and Delta Corp will further infuse Rs 40 crore to complete the project. The Daman hotel will be ready in another six to eight months and will also have a 60,000 sq. ft. casino which will be set up and operated by a subsidiary company. The company believes that hospitality business is synergistic to with its gaming business and hence will continue to in the hospitality sector with a view to maximise the gaming experience'.
Now that Delta Corp has come into picture, the Thunderbird management in its statement said that the hotel construction shall resume immediately and that completion is anticipated in phases with a full opening in late 2011.
Featuring 176 rooms, the hotel boasts of 30,000 sq ft of indoor events and 70,000 sq ft of leisure are including outdoor pools and other entrtainment zones, a spa spread across 5,000 sq ft in addition to 8,000 sq ft of hi-end shopping arcade.
Post acquisition by Delta Corp, Thunderbird and its original Indian partners will own 49% and Thunderbird will continue to operate the hotel with a management contract.
DHPL at the time of inception was an equal joint venture between Thunderbird and its Indian partner K P Group promoted by Ketan Patel, son of former Daman and Diu Congress MP Dahya Patel. Towards end of 2009, Thunderbird was reportedly in discussion with Madison India Real Estate Fund to riase funds for the resort. It couldn't be independently confirmed whether the placement did happen, however an industry source said that the promoters did eventually dilute stake in the venture to raise funds for the construction of the resort.
Pegged as India's largest gaming and hospitality company, Delta Corp, is promoted by Jayadev Mody (husband of corporate lawyer Zia Mody of AZB Partners). Mody with three other entities namely Aryanish Finance and Investment Pvt Ltd (holding equity shares in capacity of trustees for Aarti J Mody Trust), Bayside Property Developers Pvt Ltd (holding equity shares in capacity of trustees for Aditi J Mody Trust) and Delta Real Estate Consultancy Pvt Ltd (holding equity shares in capacity of trustees for Anjali J Mody Trust) hold 44.18% in Delta Corp. Billionaire investor Rakesh Jhunjhunwala with wife Rekha Jhunjhunwala are also stake owners in the company.
Acquisition of DHPL is a strategic to Delta's Gaming and hospitality foray thereby enhancing its presence and move towards a pan-India imprint. Delta had recently acquired The M V Horseshoe Casino from Harrah's Corp Inc (Caesers Palace, Las Vegas) which is expected to arrive in India by end of June 2011. This 70,000 sq ft floating facility will add another 1,500 gaming positions to the group's existing 725 gaming position.
Delta Corp has acquired a controlling stake in Daman Hospitality Pvt Ltd (DHPL), which is setting up a five-star deluxe hotel in the Union Territory (UT) of Daman near the west coast in Maharashtra. The BSE-listed company (Delta Corp) paid Rs 50 crore to acquire 51% in DHPL which is an Indian affiliate of New York-listed gaming, entertainment and hospitality company Thunderbird Resorts Inc. The hotel is to be branded and managed by Thunderbird Resorts once operational by 2011 end.
Industry sources said the acquistion is very likely a distress deal considering DHPL has been struggling to get funding for project completion. With considerable portion of the work completely already last year, the hotel was to start receiving guests in September 2010. However, the opening got delayed and what's further intersting is that, the DHPL management had already hired all the manpower required for running the property - most of them have been sitting idle for almost a year now.
Officials from both Delta and Daman Hospitality were not available for a comment. Queries emailed to Thunderbird official did not elicit a response. In a company notification to the exchange, Delta Corp, said, 'Construction of the hotel is substantially completed and Delta Corp will further infuse Rs 40 crore to complete the project. The Daman hotel will be ready in another six to eight months and will also have a 60,000 sq. ft. casino which will be set up and operated by a subsidiary company. The company believes that hospitality business is synergistic to with its gaming business and hence will continue to in the hospitality sector with a view to maximise the gaming experience'.
Now that Delta Corp has come into picture, the Thunderbird management in its statement said that the hotel construction shall resume immediately and that completion is anticipated in phases with a full opening in late 2011.
Featuring 176 rooms, the hotel boasts of 30,000 sq ft of indoor events and 70,000 sq ft of leisure are including outdoor pools and other entrtainment zones, a spa spread across 5,000 sq ft in addition to 8,000 sq ft of hi-end shopping arcade.
Post acquisition by Delta Corp, Thunderbird and its original Indian partners will own 49% and Thunderbird will continue to operate the hotel with a management contract.
DHPL at the time of inception was an equal joint venture between Thunderbird and its Indian partner K P Group promoted by Ketan Patel, son of former Daman and Diu Congress MP Dahya Patel. Towards end of 2009, Thunderbird was reportedly in discussion with Madison India Real Estate Fund to riase funds for the resort. It couldn't be independently confirmed whether the placement did happen, however an industry source said that the promoters did eventually dilute stake in the venture to raise funds for the construction of the resort.
Pegged as India's largest gaming and hospitality company, Delta Corp, is promoted by Jayadev Mody (husband of corporate lawyer Zia Mody of AZB Partners). Mody with three other entities namely Aryanish Finance and Investment Pvt Ltd (holding equity shares in capacity of trustees for Aarti J Mody Trust), Bayside Property Developers Pvt Ltd (holding equity shares in capacity of trustees for Aditi J Mody Trust) and Delta Real Estate Consultancy Pvt Ltd (holding equity shares in capacity of trustees for Anjali J Mody Trust) hold 44.18% in Delta Corp. Billionaire investor Rakesh Jhunjhunwala with wife Rekha Jhunjhunwala are also stake owners in the company.
Acquisition of DHPL is a strategic to Delta's Gaming and hospitality foray thereby enhancing its presence and move towards a pan-India imprint. Delta had recently acquired The M V Horseshoe Casino from Harrah's Corp Inc (Caesers Palace, Las Vegas) which is expected to arrive in India by end of June 2011. This 70,000 sq ft floating facility will add another 1,500 gaming positions to the group's existing 725 gaming position.
Ashsih,
ReplyDeleteThere are strong indications that Delta Corp has also bailed out - or in the process of bailing out - Blue Ocean Cruises, the cruise liner between Mumbai and Goa that also is supposed to have a casino on board. Tragedy is that a month from now all high sea cruises will be stopped. Is Delta still bailing out Blue Ocean?
I did check with the Delta officials on this deal and it seems they aren't pursuing it anymore. The guy said, they did look into the cruise company but never made an offer. So Delta and Blue Ocean transaction is off for the moment.
ReplyDeletei went to goa in may end and i saw Royal Casino Cruise which is owned by Delta corp. Cruise was lying idel and not having any business.
ReplyDeleteDelta just making investors fool.