Hospitality industry in grip of distress sales
With no immediate recovery in sight, hotel and resort owners are dialing real estate consultants to find buyers for their properties.
According to industry watchers, these properties valued anywhere between Rs 50 crore and Rs 500 crore also include some well known domestic and international hospitality brands have go up for sale in the past two months, where high overhead costs such accruing interest on loans and fixed establishment costs have made it untenable for owners to continue further.
“Prospective sale transactions are available across the country and we are seeing good interest from a mix of high net worth individuals, family offices, and financial institutions in these properties,” said Nandivardhan Jain, Founder & CEO, Noesis Capital, a hospitality-focused investment advisory firm. Jain added that if anyone is sitting on liquidity, this is the best time for them to lay their hands on these properties.
Jain however said that investors are taking a cautious approach and in most cases are seeking steep discounts on the asking price as revenue visibility remains grim.
Originally Published on: https://www.hindustantimes.com/business-news/hospitality-industry-in-grip-of-distress-sales/story-tJtykKovVGYe1xoIhOF1tJ.html