Taj Acquires Lutyen’s Delhi Hotel Through NDMC Auction
The Connaught, a premium hotel in Lutyen's Delhi, was successfully acquired by Tata Group’s Indian Hotel Company Ltd. in an e-auction conducted by the New Delhi Municipal Council today.
“The successful bidder is the Taj group which will pay 31.8 percent of the gross turnover or Rs 5.8 crore per annum, whichever is higher,” a senior NDMC official said. The auction yielded more than double the revenue that NMDC was getting from the hotel, the official added.
Licensing rights have been granted for a period of 33 years. The property at 37, Shaheed Bhagat Singh Marg has about 85 rooms, 3 banquet halls and one swimming pool and is situated adjacent to the Connaught Place.
“We are extremely delighted to win the bid for The Connaught, New Delhi. The hotel is located strategically in Lutyens Delhi, the city's most coveted address, conveniently located in the heart of capital,” an IHCL spokesperson said.
The licence fee out of this public property will help in boosting the revenue and financial potential of the NDMC which will help in financing the public projectsIHCL Spokesperson
The spokesperson said that the hotel will fit in their ‘SeleQtions’ brand that are “named” and marketed as being “unique”.
The NDMC had last year decided to auction The Connaught and re-auction Asian Hotel, after they were sealed in 2015 due to non-payment of licence fees dues. In January last year, the Asian Hotel was e-auctioned, fetching Rs 45.5 lakh per month as licence fee, the highest-ever for the agency. But, the bidder later refused to take the property necessitating a re-auction.