Hospitality firm Viceroy Hotels that owns Marriott and Courtyard by Marriott hotels in Hyderabad is open to acquisitions of distressed hotel assets as part of expansion plans.
“The company is looking to expand its assets across the country with strategic acquisitions of distressed hotel assets,” managing director K. Ravinder Reddy said in a release, announcing resumption of trading of Viceroy Hotels shares on BSE and NSE on April 3. The company recently emerged from its corporate insolvency resolution process (CIRP) in which Anirudh Agro Farms (AAFL) was the successful resolution applicant.
In a release, Mr. Reddy said the company is upbeat about the hotel landscape, given the strong demand and increase in domestic travel and expected the industry and its ARRs (average room rates) to grow significantly. The hotel industry is currently witnessing a boom for the past two years on the back of post-Covid business travel and tourism revival. The ARRs and occupancies are at record levels and the industry expects the trend to continue in foreseeable future with demand outpacing supply addition.
On resumption of trading of shares on the two stock exchanges, the company said equity shares of Viceroy Hotels were suspended and not available for trading due to the scheme of reduction of equity share capital effective October 20, 2023 to April 2, 2024.
The CIRP concluded with NCLAT Chennai Bench passing an order on October 6, 2023 approving the resolution plan submitted by AAFL. Viceroy Hotels in a filing in January 6 had informed the exchanges that all payments proposed to be made under the resolution plan have been duly made by Loko Hospitality, a subsidiary of AAFL.
