The Connaught hotel acquired by Taj Group in NDMC auction

The Connaught hotel acquired by Taj Group in NDMC auction

New Delhi: Indian Hotel Company Limited (IHCL) backed by Tata acquired The Connaught, a premium hotel in Lutyen’s Delhi. New Delhi Municipal Council (NDMC) conducted an e-auction of the hotel.

According a senior official of NDMC, Taj group emerged as the successful bidder of the hotel. The group will be paying 31.80 per cent of the Gross Turn Over (GOT) or 5.868 crore per annum whichever is higher. He also informed that the amount from this auction is almost the double than the revenue that NDMC was getting from The Connaught.

As of the now, the licensing rights to the Taj group have been granted for a period of 33 years.

There are around 85 rooms, three banquet halls and one swimming pool in The Connaught and it is situated at 37, Shaheed Bhagat Singh Marg, adjacent to Connaught Place.

The official also informed that NDMC will get boost in regards to revenue and financial potential with the licence fee out of this property and with that it will be able to finance the public projects.

Notably, it was decided that the auction of The Connaught and re-auction of Asian Hotel will be done by NDMC as they failed to pay the licence fee dues and consequently they were sealed in 2015.

It should also be noted that e-auction of the Asian Hotel in January 2017 fetched Rs. 45.5 lakh per month as licence fee which was the highest-ever for the agency but the bidder refused to take the property necessitating a re-auction.