DLF acquires Hilton's 26% stake in hotels JV for Rs 120 cr
DLF Ltd has acquired 26% stake held by Hilton in its joint venture company DLF Hotels & Hospitality Ltd (DHHL) for Rs 120 crore. The stake was acquired by DLF's wholly owned subsidiary (WoS) DLF Hotel Holdings Ltd which had 74% in the JV and the balance was held by Aro Participation Ltd and Splendid Property Co Ltd, affiliates of Hilton International Co.
The joint venture was instituted back in 2006-7 to set up a chain of hotels across the country. However, the realtor had to shelve plans because of the economic downturn in 2008 which impacted a host of real estate companies.
Confirming the development, a Hilton Worldwide spokesperson said, “DLF Ltd (DLF) has bought the 26% shareholding of Hilton Worldwide in the Hilton-DLF joint venture company. We value our relationship with DLF, and our association will continue with our managing the DLF-owned Hilton Garden Inn brand hotel in Saket, New Delhi. The hotel has performed very well and has won several awards including the prestigious HVS award for hotel of the year at the Hotel Investment Conference – South Asia in 2010.”
The DLF-Hilton JV was to build a chain of hilton branded hotels across the country over a period of 5-7 years from instituting the company. As per the arrangement Hilton was to invest up to $143 million in the 75-odd hotel developments to be undertaken by the JV company.
However, with this transaction getting concluded, DLF Hotels now becomes a wholly owned subsidiary of DHHL. DLF spokesperson when contacted confirmed the deal value to be Rs 120 crore and that the joint venture currently has 4 hotels sites one each in Kolkata, Chennai, Trivandrum and NCR.
"The transaction has been done to take complete ownership of the company and its underlying assets including unbuilt hotel sites with a view to monetize them. This is part of DLF's ongoing strategy to divest non-core assets," said the spokesperson.
DLF Ltd has acquired 26% stake held by Hilton in its joint venture company DLF Hotels & Hospitality Ltd (DHHL) for Rs 120 crore. The stake was acquired by DLF's wholly owned subsidiary (WoS) DLF Hotel Holdings Ltd which had 74% in the JV and the balance was held by Aro Participation Ltd and Splendid Property Co Ltd, affiliates of Hilton International Co.
The joint venture was instituted back in 2006-7 to set up a chain of hotels across the country. However, the realtor had to shelve plans because of the economic downturn in 2008 which impacted a host of real estate companies.
Confirming the development, a Hilton Worldwide spokesperson said, “DLF Ltd (DLF) has bought the 26% shareholding of Hilton Worldwide in the Hilton-DLF joint venture company. We value our relationship with DLF, and our association will continue with our managing the DLF-owned Hilton Garden Inn brand hotel in Saket, New Delhi. The hotel has performed very well and has won several awards including the prestigious HVS award for hotel of the year at the Hotel Investment Conference – South Asia in 2010.”
The DLF-Hilton JV was to build a chain of hilton branded hotels across the country over a period of 5-7 years from instituting the company. As per the arrangement Hilton was to invest up to $143 million in the 75-odd hotel developments to be undertaken by the JV company.
However, with this transaction getting concluded, DLF Hotels now becomes a wholly owned subsidiary of DHHL. DLF spokesperson when contacted confirmed the deal value to be Rs 120 crore and that the joint venture currently has 4 hotels sites one each in Kolkata, Chennai, Trivandrum and NCR.
"The transaction has been done to take complete ownership of the company and its underlying assets including unbuilt hotel sites with a view to monetize them. This is part of DLF's ongoing strategy to divest non-core assets," said the spokesperson.
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