Parsvnath's hotel arm divests stake in joint venture with Royal Orchid

NEW DELHI: Realty firm Parsvnath Developers today said its hotel arm has divested its stake in joint venture company with Royal Orchid Hotels.

This is part of the company's strategy to focus on core real estate business and exit from non-core venture such as hospitality.

In a filing to the BSE, Parsvnath said: "..consequent to the disinvestment of equity shares by Parsvnath Hotels Ltd in Parsvnath Royal Orchid Hotels Ltd (PROHL), PROHL has ceased to be a step-down Subsidiary of the Company during the quarter ended March 31, 2013."

Accordingly, the total number of subsidiary companies stands reduced from 16 to 15.

In 2008, Parsvnath had entered into a joint venture with Bangalore-based Royal Orchid Hotels to develop 10 hotels in the country.

However, the joint venture did not come up with any hotel properties following slowdown in the real estate market and economy in India as well as globally.

Shares of Parsvnath on BSE today closed 4.74 per cent down at Rs 34.20, valuing the firm at Rs 1,423 crore.