Southern States - Kerala-Thiruvananthapuram

ITDC's Kovalam unit sold for a song

By S. Anil Radhakrishnan

THIRUVANANTHAPURAM May 21. The State's premier five-star hotel and India Tourism Development Corporation's (ITDC) Kovalam Ashok Beach Resort has been sold to the Oman-based multi-discipline group, Galfar, for a song.

Galfar, which owns the international convention centre in Kochi and two hotel properties in the State, has bagged the financial bid to take over the 65-acre sprawling resort, which comprises a 386-bed hotel, the imposing Halcyon Castle and the Rajiv Gandhi Convention Centre for Rs. 44 crores.

The group was the highest bidder for the prime property at Kovalam when the financial bids were opened at the Union Ministry of Disinvestment in Delhi today. When contacted by The Hindu, an official of the group confirmed that they were declared as the winners. An official declaration is expected in 10-15 days after the Disinvestment Committee and the Cabinet clear the deal.

Of the 32 prospective buyers, including leading international hotel chains, only six groups--Galfar, BPL Innovations, Thomas Cook, Bharat Hotels and Kerala Hotels--submitted the financial bids, for which May 15 was the last date. Thomas Cook and another group could not produce the requisite bank gurantee leaving four groups in the fray.

While Bharat Hotels quoted Rs. 42 crores, Galfar quoted Rs. 44 crores for the property. The reserve price fixed by the Union Government-appointed consultant Lazard Capital, submitted to the Union Ministry of Disinvestment, has not been made public.

Sources said the resort was sold for a song as the 65-acre property alone is worth Rs. 65 crores at the prevailing market rate in Kovalam. The imposing castle and convention centre with state-of-the-art facilities are worth Rs. 15 crores and the 200 rooms are estimated to cost Rs. 20 crores. This is the only resort in Kovalam which has a beach frontage of 2.5 km.

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