Finally! DLF gets a buyer for Aman Resorts

The country’s largest real estate player, DLF, is ready to encash its key hotel asset as it looks to retire rising debt.

DLF has debt of about $4.2 billion and has been trying to reduce this burden by selling its non-core assets, including the Aman Resorts International hotel chain and a property in Mumbai. And according to a CNBC-TV 18 exclusive, the realty player hopes to close the $400 million Aman Resorts deal in July.

The company is in talks with two parties and is likely to sign the memorandum of understanding for its hotel asset by the end of this month with one of the parties, after which the due diligence process would take place. Sources have told _CNBC-TV18’_s Nayantara Rai that Goldman Sachs has the mandate for Aman Resorts sale.

More from Business

Hyundai India’s Rs 27,870 crore IPO oversubscribed by 2.28X, largely driven by institutional investors How Indian fintech startups are driving Malaysia’s UPI-like digital payments revolution

[caption id=“attachment_312143” align=“alignleft” width=“380” caption=“DLF bought Aman Resorts, which has a total of 23 hotels, in 2007 for around $400 million. Reuters”]  [/caption]

DLF bought Aman Resorts, which has a total of 23 hotels, in 2007 for around $400 million. The sale is expected to fetch the company between 2,000-2,500 crore, which will help it reduce its debt by around Rs 22,758 crore.

Earlier this week, various reports said that the cash-strapped property company is planning to sell a majority stake in its life insurance joint venture to HCL Group for about Rs 500 crore to pay a part of its debt.

Impact Shorts

More Shorts

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

As Trump weaponises tariff, Fed sees a bigger worry: Not jobs, but rising prices in America

This trend of going the asset light way to restructure debt is now an emerging trend among various companies that had borrowed a lot of money to expand business but are now putting hotels on the block to generate more working capital.

According to a report in the Economic Times, companies like DB Group, DLF, Eros, Leela and Royal Orchid Hotels, among others, have put their hotels in various parts of the country on the bloc.

Since hotel businesses are capital intensive and require around five to seven years to break even as against commercial and residential realty which requires around 18-36 months, most companies are planning to sell their hotels and take them back on a management contract, the report said.