Rayala Group sells its Chennai five-star hotel for 150 crore
The Rayala Group has sold its five-star hotel in Chennai – ‘Reseda-The Fern’ – to Colombo-based hotel chain Aitken Spence Hotels for approximately Rs 150 crore ($25 million).
Hinting at the purchase of ‘Reseda-The Fern’ five-star hotel in Chennai, Aitken Spence Hotels – which operates hotel chains in countries like India, Sri Lanka, Maldives, and Oman – told Colombo Stock Exchange that its Indian division has bought a brand new 143-roomed five-star hotel in Chennai. It, however, did not specify the name of the hotel.
The purchase of ‘Reseda-The Fern’ by Aitken Spence Hotels marks an expansion move by the reputed hotel chain in India. The company already manages two hotels in the country — one in Coimbatore and the other in Pondicherry.
Meanwhile, so far as the sale of the hotel by the Rayala Group is concerned, a banker aware of the deal has revealed that the ‘Reseda-The Fern’ five-star hotel was developed by the Rayala Group in Chennai’s IT corridor, with an investment of Rs 120 crore. The banker also said that the hotel has been sold by the group to reduce its debt.
The Rayala Group’s decision to sell its ‘Reseda-The Fern’ five-star hotel in Chennai to Aitken Spence Hotels comes at a time when the hotel industry, particularly in Chennai, is bogged down due to over-capacity and low occupancy.
Source – The Economic Times
Chennai five-star hotel sold for Rs 150 crore, Colombo Stock Exchange Aitken Spence said its Indian arm has bought a brand new five-star, five-star hotel in Chennai for $25 million, Rayala Group developed the hotel in Chennai's IT corridor
