Royal Orchid has recently reported the sale of its Royal Orchid Central hotel in Ahmedabad (India) to Samhi Hotels. The luxury 104-guestroom hotel is sold for US$12.8 million. Even though the owner has been changed, both parties have agreed that Royal Orchid will keep managing the hotel.
According to the report issued by Royal Orchid Hotels, the sale of the hotel is a part of the global strategy of the company. The Bangalore-headquartered hotelier plans to get rid of a part of its assets in order to pay off the company’s debt that currently estimates US$43 million. In order to make this possible, Royal Orchid plans to reinvent its operating strategy and has plans of concentrating more on managing hotels rather than owning them. The company doesn’t feel “desperate”, but is open to selling other properties if a good price is offered.
The new owner, Samhi Hotels located in Gurgalion, is an Indian developer with the US share. Last November the company received an investment of US$75 million from the American firm Equity International owned by the estate mogul Sam Zell.