Royal Orchid Hotels announced on Wednesday that it sold the 104-room Royal Orchid Central, Ahmedabad to Samhi Hotels for Rs 67 crore (US$12.8 million).
The hotel is located in Ahmedabad, India, and Royal Orchid will continue to manage the property.
Royal Orchid Hotels, Bangalore, India, said the sale was part of a debt reduction strategy, noting that following the sale the company’s overall debt would fall to Rs 225 crore (US$43 million).
“The deal is part of a restructuring plan wherein we will focus more on management contracts than ownership,” Chander Baljee, Royal Orchid’s chairman and managing director told Press Trust of India. “We are open to selling other properties but it has to be at the right price. We are not desperate otherwise.”
U.S. real estate mogul Sam Zell’s Equity International closed a US$75 million investment in the Indian hotel development company Samhi Hotels, Gurgaon, India, in November.