According to the investment memorandum, floating in the industry, the 93 Key Hotel is owned by Devaraya Hospitalities, a wholly-owned subsidiary of struggling real estate company Radius Developers which was admitted by the National Company Law Tribunal a while ago. a year.
The hotel, said to be India’s first transit hotel inside an airport terminal, is managed and operated by InterContinental Hotels Group (IHG) under the Holiday Inn Express brand. The duration of the management contract with IHG is 15 years from December 2015 and the 20-year license agreement with Delhi International Airport Ltd ends in June 2030.
People familiar with the matter said the property was the “best performing” Holiday Inn Express in the country. As this is a transit hotel, rooms may be sold for a shorter duration, at hourly rates, resulting in higher occupancy.
Radius Developers and IHG did not respond to ET’s emailed queries until press time.
Divided into an international wing (airside) and a domestic wing (landslide), the hotel is located on the fifth floor of Terminal 3. The international wing is accessible from the international shopping area or the duty-free side, while that the domestic wing is accessible from the integrated departure hall. The hotel also offers seven water pods, all-day dining with a bar, spa, and fitness and business centers.
âThe sale is related to problems encountered by Radius Developers. They have been considering parting with it for some time. It has nothing to do with the performance of the hotel or IHG. The hotel is doing exceptionally well,â a person familiar with the developments said on condition of anonymity.
According to media reports, the Law Enforcement Branch last month seized assets worth Rs 415 crore from Sanjay Chhabria, the promoter of Radius Group, and Avinash Bhosale, chairman of Avinash Bhosale Infrastructure Limited, who are accused in the case Yes Bank-Dewan Housing Finance Ltd. . ET reported in June that the bankruptcy court had ordered personal insolvency proceedings against Chhabria.