GMR Infra to sell Novotel hotel via Swiss Challenge method
MUMBAI: GMR Infrastructure Ltd is planning to sell GMR Hotels and Resorts Ltd, which owns and manages Novotel Hyderabad Airport Hotel.
The bidding process for selling the hotel is at a very early stage of calling for so-called expression of interests (EoIs) and the company will take a suitable decision based on any interest received over and above the floor price, GMR Infrastructure said in a filing to BSE on Friday. Novotel Hyderabad Airport Hotel is owned by GMR Hyderabad International Airport Ltd. The company said it was planning to sell the hotel since financial year 2014.
"In the meantime, GMR Airports Ltd (holding company of GMR Group's airport businesses) had offered to acquire the GMR Hyderabad International Airport's stake in GMR Hotels and Resorts. The board of GMR Hyderabad International Airport could not decide on the offer and suggested bidding process under Swiss Challenge method," the company said. Under the Swiss Challenge system, third parties are allowed to make better offers (challenges) for a project during a designated period while the original bidder is given the right of first refusal and the right to counter-match any superior offers given by a third party.