Royal Palms to sell four hotels; hopes to raise Rs 2,500 crore

Real estate developer Royal Palms India plans to sell four of its hotels in the city and hopes to raise up to Rs 2,500 crore for further expansion and diversification into the agriculture sector, a top company official said today.

"We will be cultivating high-paying crops, from grains to fruits organically. We are seriously looking at diversifying into the agriculture sector and have already bought around 300 acres in Pune.

"Nearly 30 per cent of the funds raised from the sale will be employed for expanding this business," Joint Managing Director Dilawar Nensey told PTI here, adding that cultivation on 100 acres has already commenced.

The city-based company, a part of the Amir Group, is also looking at acquiring around 1,500 acres in Kolhapur.

On its 240-acre project Royal Palms Estate in Goregaon, the company has three hotels in the five-star category, including Hotel Imperial Palace, Palms Hotel Tower & Convention Centre, as well as Palms Villas Hotel, besides another hotel under construction, with over 400 rooms.

"We have been running these hotels for quite some time and now we are looking at liquidating these assets mainly for growing our business," he said.

The company hopes to raise over Rs 2,500 crore and has appointed consultancy firm Knight Frank for executing the deal.

"We will wait for the best valuation, as we are in no hurry to sell it off. We are getting inquiries from both domestic as well as international buyers, after the government relaxed FDI norms," he said.

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