Viceroy Hotels rallies over 9% on stake sale reports

NEW DELHI: Viceroy Hotels Ltd rose as much as 9.4 per cent in trade on Thursday after media reports suggested that the Hyderabad based hotel is looking to sell its entire 40 per cent stake in the upcoming Renaissance Hotel in Bangalore for around Rs 100 crore as it struggles to fund the project, a person familiar with the development said.

At 09:40 a.m.; Viceroy Hotels pared some of the morning gains and was trading 5.8 per cent higher at Rs 20.10. It hit a low of Rs 19.85 and a high of Rs 20.80 in trade today.

"The developer has been unable to fund the project due to lack of resources and inability to follow through on the project investment timelines," the person told ET. Property consultancy CBRE is acting as transaction advisor, the person added.

JP Morgan Fund holds 60% stake in the 277-room hotel project overlooking the landmark Racecourse in Bangalore, which would be managed by the Marriott International under its Renaissance brand.

An email query sent to Viceroy Hotels, in which ace broker Rakesh Jhunjhunwala and family hold 14.64% stake, did not elicit any response as of press time, added the ET report.