The race to acquire Asian Hotels picks up steam with seven contenders

The listed Asian Hotels (West) which operates Hotel Hyatt Regency near Mumbai Airport and JW Marriott Hotel at Aerocity in New Delhi was admitted for corporate insolvency. The lenders of the hotel received expression of interest (EOI) from seven entities including K Raheja Group, Devrrat Developers, Panchsil Corporate Park, GVPR Engineers, Jindal Power and two consortiums. One consortium includes Basab Bijara Paul, Savannah Lifestyle and Prema Investment Services. While other is a consortium led by Mayank Welfare Society, Amaltas Hotel, Suresh Singh Bhadauria and Amaltas Resorts.

UV Asset Reconstruction Company (ARC) extended the deadline for submitting the resolution from March 10 to April 7. It holds 98.8% of the debt. The initial lender Yes Bank sold its entire loan to JM Financial ARC in June 2022 which in turn sold it to UV ARC when NCLT admitted the hotel to corporate insolvency for upfront cash. Since the loan itself has been traded twice the terms of the sale of the hotel are restrictive said an expert advising one of the Big Four consulting firms.

The offer document inviting EOI stated that the prospective resolution applicant must provide Rs. 200 crore as interim finance to restart company’s operation which should not exceed SBI’s 12-month MCLR (marginal cost of funding-based lending rate). SBI’s MCLR stands at 8.4%. The EOI also mentioned that the applicant must provide proof of funds which would act as a proof of the availability of the liquid funds along with their EOI. The applicant must provide interim finance at any stage of the resolution process.

The Asian Hotels (West) shut down the Hyatt Regency Hotel in Mumbai because Yes Bank blocked all the accounts after the hotel defaulted on payments. The bank took the possession of Hyatt Regency building in September 2021.

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The race to acquire Asian Hotels picks up steam with seven contenders

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