Advani Hotels locked in upper circuit, up 20%, hits 52-week high; volumes surge over 1000%

NEW DELHI: Advani Hotels Ltd surged as much as 20 per cent in trade on Tuesday for a second day in a row on reports that ITC Hotels could be close to buying its property in Goa.

At 10:30 a.m.; Advani Hotels was locked in upper circuit at Rs 61.90, which also markets its fresh 52-week high level. The stock has more than doubled investor's wealth so far in the year 2014.

The counter has seen huge trading activity with volumes surging as much as 1849.79 per cent in trade today as compared to average daily volume in the last 30 days, indicating strong buying interest in the stock.

The stock recorded 65084 shares changing hands in morning trade on BSE as compared to its average daily volume of 3338 shares in the last 30 days,

ITC Ltd's hotel division is close to acquiring the Ramada Caravela Beach Resort from Advani Hotels & Resorts at a cost of Rs 700 crore, ET reported quoting people with direct knowledge of the negotiations on Monday.

A senior Advani Hotels executive also declined to comment. The property gives ITC the opportunity to take over a readymade hotel in a state where getting land for new projects hasn't been easy, according to experts.

ITC Hotels currently operates amid-market facility under the Fortune brand in the state and has been on the hunt for a bigger property for some time now.

The Ramada property has substantial scope for expansion and is very close to the sea, making it an ideal choice for a luxury hotel operator, according to those cited above.