Indian Hotels acquires Sea Rock Hotel for Rs 680 crore

Indian Hotels acquires Sea Rock Hotel for Rs 680 croreIndian Hotels Company Ltd (IHCL), owners of the Taj properties, has acquired Sea Rock Hotel, one of Mumbai’s best-known landmarks since 1978, for Rs 680 crore.

Yesterday, the company stated in a release that it has bought 85% stake in ELEL Hotels and Investments, which owns the property on which Sea Rock Hotel is built in southern Bandra, for Rs 680 crore.

Latest reports suggest that IHCL intends to demolish the existing 480-room Sea Rock Hotel and build an integrated complex that will include a hotel, a large convention centre and a retail outlet at an investment of Rs 500 crore.

Market experts believe that acquisition will increase the footprint of Taj group in north Mumbai as the city will soon see the opening of the Bandra-Worli Sea Link.

In a separate communiqué, the company has informed that it has registered a PAT of Rs 234.03 crore for the year ended March 31, 2009, against Rs 377.46 crore for the year ended March 31, 2008.

Apart from announcement of results, the company has recommended a dividend of Rs 1.20/- per equity share on the face value of Re 1.