Hyderabad-based Viceroy Hotels Ltd has sold its Chennai hotel project in MRC Nagar to Chennai-based Mahal Hotels Private Ltd. “We have finalised the deal with Mahal Hotels and decided to exit the Chennai project. This move will help us reduce our debt by Rs 400 Crore. Then we will have a light balance sheet with a debt of about Rs 200 Crore,” said P Prabhakar Reddy, Chairman and Managing Director, Viceroy Hotels.
The company has been seeking to restructure its business operations to bring down debt on its balance sheet. This project, which the hospitality chain had taken up with an outlay of about Rs 650 Crore, was under the advanced stage of implementation. Reddy said, “This move would help the company focus on existing projects and thereafter enable us to take up new projects. The debt had become a major issue.”