DLF has bought its partner Hilton’s 26% share in joint venture DLF Hotels & Hospitality for Rs.120 crore. In a filing with the Bombay Stock Exchange, DLF said “it has acquired additional 26% equity shares of ‘DLF Hotels’ from Aro Participation Ltd and Splendid Property Company Ltd, affiliates of Hilton International Co.” DLF has bought out Hilton’s stake to take complete ownership of the company and its underlying assets, which include hotel sites, to monetise them.
“This is part of DLF’s ongoing non-core divestment strategy,” said aDLF spokesperson. DLF and Hilton had set up the 74:26 joint venture in 2006, and had planned to build 75 hotels in India over the next five to seven years. DLF Hotels & Hospitality owns four plots of land, in Kolkata, Chennai, Trivandrum and Mysore and the process to sell these plots is already on, said a source close to the development. Hilton also manages one hotel managed by DLF in Delhi’s Saket area , which it will continue to do.
The real estate developer is in the process of selling a number of its non-core assets in the last few quarters to reduce its debt. The company’s debt stood at Rs.22,519 crore at the end of September 2011, up nearly Rs.1,000 crore from Rs.21,524 crore as of June 30. It has recently sold an IT Park in Noida in which it had 71% stake to IDFC and have already got Rs.200 crore payment in the first tranche.
