Building housing Courtyard on sale
DC CORRESPONDENT A building that houses Courtyard by Marriott at Kavadiguda has been put up for auction by State Bank of India and Canara Bank to recover their loans.
The building, which is owned by Mr P. Prabhakar Reddy-led Viceroy Hotel Ltd, was given on management contract to US-based global hospitality major Marriott International, Inc.
Under the management contract, the owner of a building can allow a hospitality company to operate the hotel under its brand.
Similarly, this case, the building is owned by Viceroy Hotel Ltd, while the hotel is operated by Marriott.
According to the e-sale notice, reserved price is `92.34 crore, while the eligibility deposit for applicants is `9.23 crore, which is refundable.
The building, which is on Lower Tank Bund is being auctioned under the Sarfaesi Act.
Attempts to reach out to the Viceroy management proved futile. Officials of Marriott, which operates Court-yard, refused to comment as they had no information about the auction.
Marriott also operates its hotel in the older building abutting the Tank Bund road.
A source from the bank recovery agency dealing with the e-auction of the hotel, “The public notice is issued in the name of Viceroy Hotels Ltd, though the building is named Courtyard by Marriott. Viceroy Hotel has taken loans of over `100 crore from two banks and has defaulted on repayment for over a year. This is the second time that the building is being put up for auction by the banks. Earlier, the owner had assured repayment to avert the auction but he did not.”
Viceroy Hotels had brought Marriott to Hyderabad, the first global hotel brand in the city. Viceroy has been in financial trouble for sometime. In 2014, it sold its hotel property — Marriott operated its JW Marriott Hotel — in Chennai to reduce debt.