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The country’s second-largest listed real estate company, Unitech, has put on the block six hotel projects under construction to reduce its capital expenditure and raise cash to fund its other ongoing projects.
All the six properties are coming up at Gurgaon and Kolkata.
The company had also scaled down its target for hotel business. Instead of 15 hotels with 2,500 rooms as planned earlier, Unitech has decided not to go beyond the 1,000-room capacity.
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It is, however, proceeding with its hotel business as planned. Six of its hotels are under construction and the first is expected to open in January 2009.
Unitech’s first hotel project will be the 199-room mid-market property, to be managed by Marriott and sporting the Courtyard brand. It is understood that the company was seeking a valuation of Rs250-300 crore for the property.
Unitech had planned to build 35 hotels, of which 15 were expected to be constructed in the first phase. For this purpose, the company expected to raise US$350 million (Rs174 crore) through private equity in the current fiscal.
The global financial turmoil has made fund-raising difficult for real estate firms.
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