ITDC invites bids for 8 hotels

By Our Special Correspondent

NEW DELHI, DEC. 11. The Government today invited bids for sale of six hotels and lease-cum-management contracts for two hotels of the India Tourism Development Corporation (ITDC). With this, the Government has finally begun the process of withdrawal from the hotel business.

In the first tranche of the restructuring and disinvestment programme for ITDC, two Ashok Hotels in New Delhi and Bangalore are being offered for a lease-cum-management arrangement on a long-term basis. The six hotels proposed to be sold outright are: Agra Ashok, Madurai Ashok, Manali Ashol, Bodhgaya Ashok, Hassan Ashok and the Temple Bay Beach Resort at Mamallapuram.

According to pre-qualification criteria, companies submitting expression of interest for the management contracts should be established hotel operators of Indian or international repute which either own or manage five-star hotels. Consortia with such hotel operators as members are also eligible.

In the case of hotels being sold, the criteria stipulate that the companies should each have a net worth exceeding Rs. 3 crores. The entities described as eligible for the sale are companies, joint ventures, consortia, hotel operators and hotel management companies. The EOI of these entities will be evaluated by Lazard India, the Central Government and ITDC. The last date for submitting bids is January 25.

At present, the Government has a 89.7 per cent shareholding in ITDC. The Disinvestment Commission had recommended divestment of up to 74 per cent of ITDC's equity in the current fiscal by leasing out hotels, demerger of ITDC hotels in small towns and spinning them into separate companies before the sell-off.

The Ashok Hotel in the capital, which is being offered for management contract, has 560 rooms and the property extends over 21.16 acres. The Bangalore Ashok is smaller with 183 rooms and the property covers 10.33 acres.

Of the properties being sold outright, the Temple Bay Beach Resort at Mamallapuram is spread over 49.97 acres and has 36 rooms. The Bodhgaya Ashok has 32 rooms as well as a 48 bed Japanese dormitory and is located on a property of 4.78 acres. The Madurai Ashok has 54 rooms on 2.6 acres, the Manali Ashok has 29 rooms on a 2.37 acre property while the Agra Ashok has 58 rooms on 2.2 acres of land.

According to the announcement, the ITDC's hotel chain the Ashok group has 33 hotels in 26 major destinations across the country. The range of hotels varies from five star deluxe to budget hotels, from beach resorts to heritage properties. The elite hotels are the five star properties that cater to up-market clientele. The classic group comprises properties that meet the expectations of business travellers and mid-market guests while the comfort category comprises budget hotels. The New Delhi and Bangalore Ashok are in the elite group, the Hassan Ashok is a comfort hotel while the remaining five are in the classic category.

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