DLF buys out Hilton Hotels stake in JV for Rs120 crore
06 Dec 2011
India's largest real estate company DLF Ltd has taken full control of its joint venture with Hilton Hotels by acquiring its 26-per cent stake in DLF Hotels & Hospitality, for Rs120 crore.
In a filing with the Bombay Stock Exchange, New Delhi-based DLF said, "it has acquired additional 26 per cent equity shares of 'DLF Hotels' from Aro Participation Ltd and Splendid Property Company Ltd, affiliates of Hilton International Co."
A DLF spokesperson said, ''This is part of DLF's ongoing non-core divestment strategy. This transaction has been done to take complete ownership of the company and its underlying assets including un-built hotel sites with a view to monetise them.''
A Hilton Worldwide spokesperson said, ''DLF has bought the 26 per cent shareholding of Hilton Worldwide in the Hilton-DLF joint venture company. We value our relationship with DLF, and our association will continue through managing the DLF-owned Hilton Garden Inn brand hotel in Saket, New Delhi."
In 2006 DLF and Hilton had set up the 74:26 JV and had planned to build 75 hotels across India over the next seven years. It was one of the first large foreign direct investments in the hospitality sector in the country.
In 2008, Hilton Hotels, a global hospitality group, had signed an agreement to manage seven new hotels being developed by DLF.