RK Damani Buys Radisson Blu Alibaug for Rs 135 crore : The Economic Times

Mumbai



Stock market veteran's Derive Trading buys 156-room property from Pune's Phadnis Group; Carlson Rezidor will continue to manage the hotel.

Radhakishan Damani, a stock market veteran and owner of hypermarket chain D-Mart, has bought five-star hotel Radisson Blu Resort & Spa in Alibaug, a popular coastal town some 100 km from Mumbai. Damani's Derive Trading has acquired the 156-room property that is owned by Pune-based real estate developer Phadnis Group for 135 crore. “We decided to sell the hotel around four months ago. Damani was interested in buying it and we initiated the discussions three months back,“ Vinay Phadnis, chairman and MD at Phadnis Group, told ET. He said the property will continue to be managed by the Carlson Rezidor Hotel Group under its upscale Radisson Blu brand. Damani -a low-profile but ace stock market investor -did not respond to an email query sent by ET as of press time on Wednesday.

Industry watchers now expect several such deals in the space as more than 80 hotels ranging from mid-market to premium are estimated to be up for grabs.

“This deal is a good signal for the hotel industry, which is seeing a lot of stress and many people want to exit,“ said Mandeep Lamba, managing director -hospitality group at consultancy firm JLL India. “Properties are beginning to sell at the right valuation,“ he said.

Phadnis said the decision to sell the Alibaug hotel was part of the group's plan to focus on its real es tate business. “We had diversified into hospitality space, but we now want to concentrate only on real estate and the proceeds from the sale of the hotel would be invested in the 40 lakh square feet real estate that we own in Pune,“ he said.

The Phadnis Group also owns three-star hotel Sahil Sarovar Portico in Lonavala, a hill station in Maharashtra. The Group has interests in real estate, infrastructure and hospitality . Its Alibaug hotel was . 110 crore.built in 2008 at a cost of ` Hospitality consultants said this deal was in line with current market prices. “An upscale hotel with a good brand in a leisure location selling at over `. 80 lakh a key is a fair deal,“ said Achin Khanna, managing director for consulting & valuation practice at HVS South Asia. “The potential of the asset to earn in the future is likely to be commensurate to the valuation it has drawn currently ,“ he said.

In the last few years, the hospitality industry in the country had been impacted by the overall slowdown in economy , coupled with a sudden rise in inventory in several key cities.