The Dharampal Satyapal Group has emerged as the winning bidder for Viceroy Bangalore Hotels, which has been going through insolvency proceedings since last year.
Viceroy Bangalore Hotels Pvt Ltd, which owns the Marriott-managed five-star Renaissance Bengaluru Race Course Hotel, has around Rs 1,100 crore of debt. People in the know said the Dharampal Satyapal Group won the bid by offering Rs 300 crore.
Edelweiss Asset Reconstruction Co is the lead creditor to the company, besides Vistra ITCL (India) Ltd. The Hyderabad bench of the National Company Law Tribunal last August ordered commencement of corporate insolvency resolution proceedings against the company.
The Dharampal Satyapal Group, which owns brands such as Rajnigandha, Pulse and Catch, and also operates in the hospitality sector, did not respond to a request for comment. Viceroy Bangalore Hotels’ resolution professional, Kuresh Hatim Khambati, said the process had seen “encouraging interest”, but declined to comment further citing “confidentiality”.
People familiar with the matter said Varrenyam Consultants and Khaitan & Co were the financial and legal advisers for this transaction to Dharampal Satyapal Group.
They said Viceroy Bangalore Hotels had received around eight resolution plans. Salarpuria Sattva, Rhythm Hospitality and Kailash Darshan Housing Development were among the other entities that submitted resolution plans.
“Viceroy Bangalore Hotels saw good participation with as many as 37 expressions of interest. Out of these, 34 were found to be eligible. Eight entities submitted their resolution plans for the company. The committee of creditors has approved the plan from Dharampal Satyapal Group,” a person familiar with the developments said.
The Dharampal Satyapal Group’s portfolio of hotels includes the Manu Maharani in Nainital; Namah in Jim Corbett National Park, Radisson Blu in Guwahati, Crowne Plaza in Jaipur and the Holiday Inn Express in Kolkata.
The 277-room Renaissance Bengaluru Race Course Hotel is located in the central business district, close to the Bangalore Turf Club.
The hospitality sector has been on an uptick over the past one year with the easing of Covid-related curbs and significant pent up demand. As per the India Hospitality Overview 2022, a report released by Noesis Capital Advisors, hotels will continue to make significant strides towards recovery this year. According to the Noesis research team, hotel demand is projected to surpass the pre-Covid 2019 levels while revenue is expected to reach “new heights”.
