ITC looking for acquisition of hotels

NEW DELHI: With the global downturn throwing up opportunities to take over valuable assets at attractive price, diversified conglomerate ITC Limited on Thursday said it is considering acquisitions, mainly in the hospitality sector.

"We are looking for operations to buy assets, particularly in hotel area. We will buy where asset prices are feasible and we are looking at all categories ranging from three to seven star hotels," ITC Chairman Y C Deveshwar said on the sidelines of a CII summit here.

He said the company has resources to expand and will take the opportunity of economic slowdown to acquire assets as asset value at present is very attractive.

"In fact, we are looking this (economic slowdown)as an opportunity to grow. In every adversity there is an opportunity," Deveshwar added.

He said dialogue with various companies were on and if the deal fits into the company's plan, it will go for it.

Asked if the slowdown had impacted the company's expansion plans, he said, "There are no plans to cut back on investments. We will stick to our capex plan because we would not sacrifice our long-term focus. We are going to accelerate our investment."

Last year, the company had said it plans to invest about Rs 15,000 crore in the next five to seven years in areas such as hotels, agri-business and FMCG.

Deveshwar, however, conceded the economic slowdown has affected the company.

"We are also impacted of course as we are not insulated from the economy. But we are not sacrificing our long-term goals," he said.

Commenting on the fallout of Mumbai terror attacks on the group's hospitality business, he said, "Occupancy rate would have been better during this season".