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Berggruen eyeing Dawnay Days hotel chain in India
Berggruen Holdings, a New York-based investment company is in talks with UK investment group Dawnay Day to acquire its four-star hotel chain Ten Hotels in India. The deal will be worth over $50 million. Dawnay Day had initiated the process to sell its investments in financial services, hotels and real estate ventures in India as the UK firm fell victim to post-subprime credit crunch following which an administrator, BDO Stoy Hayward, was appointed. The administrator is now disposing the firm’s assets across the world.
Leading hotel and real estate developers such as ITC, Royal Orchid, Pride Hotels, Sarovar group, Lemon Tree, DLF and Paraswanath were part of the race to buy out Dawnay Day’s three hotel properties and other real estate assets in India. Dawnay Day controls its real estate and hotel subsidiary in India through its two subsidiaries—Dawnay Day Hotels India and Dawnay Day India Land
The hotel arm has three properties in Jaipur, Ahmedabad and Pune. The Jaipur property may be ready by year-end while Ahmedabad property will be ready by the end of next year. The Pune property, which is likely to be ready by the end of 2010, is currently facing complications, sources said. “The Pune property may not be part of the package due to some complications,” a source said. The company hopes to be a major player in the mid-range segment, owning and managing 100-room, full-service hotels operating in the Rs 1,000 to Rs 2,000 pricing segment. The hotels will be spread across tier I, II and III cities with a mixed focus on industrial, business and tourism centres.
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