National Monetisation Pipeline: Highlights for Hotels

The total asset universe considered for the exercise are the hotel assets under the central sector agencies India Tourism Development Corporation (ITDC) under administrative control of the Ministry of Tourism.

ITDC is running hotels, restaurants at various places for tourists, besides providing transport facilities. The present network of ITDC consists of 4 Ashok Group of Hotels, 4 Joint Venture Hotels, 7 Transport Units part of the travel & tourism infrastructure, 14 Duty Free Shops at Seaports, 1 Sound & Light Show and 4 Catering Outlets. The hotel assets under ITDC comprise of the following:

1 Hotel Pondicherry Puducherry

2 Hotel Kalinga Bhubaneshwar

3 Hotel Ranchi Ranchi

4 Hotel Nilachal Puri

5 Hotel Anandpur Sahib Rupnagar

6 Hotel Samrat New Delhi

7 Hotel Ashok New Delhi

8 Hotel Jammu Ashok Jammu 

ITDC is exploring monetisation of its properties which have been considered under the monetisation pipeline. Major assets which are under various stages of discussion as following:

 Joint leasing of Hotel Pondicherry Ashok, Puducherry

 O&M contract for Hotel Kallinga Ashok, Bhubaneshwar

 Divestment of Hotel Ranchi Ashok, Ranchi

 Divestment of Hotel Nilachal, Puri

 Transfer of ownership of Anandpur Sahib Hotel

 Subleasing of Hotel the Ashok, New Delhi

 O&M contract for Hotel Samrat, New Delhi

 O&M contract for Hotel Jammu Ashok, Jammu 

Factors influencing monetisation of the asset class

Potential to leverage the Brand Value of Ashok Group – The Ashok group of hotels is the flagship hotel chain under ITDC which have a brand value developed over last 40-50 years and has been the centre stage for all government events organised by various ministries and public sector entities. The Ashok hotels has been the key part of major Conferences, Exhibitions, Workshops/ Seminars and other National and International events organised.

Government push for underutilised assets – ITDC chain of hotels being placed at ~125 acres of land parcels spanning across major cities across the country have not been utilised to their maximum potential.

Strategic Location Advantage – ITDC hotels have the location advantage as majority of the hotels are placed at the heart of the city in prime locations (Hotel the Ashok,Hotel Samrat, Hotel Kalinga etc.).

All 8 hotel assets of ITDC have been considered for monetisation during FY 2022 to 2025. Long-term leasing, divestment, long term OMT contract may be explored as potential models for monetisation to be ascertained on a case to case basis as per detailed asset level due diligence.