French hospitality giant Accor is eyeing the sale of its 40% stake in the Sofitel hotel in Mumbai, sources said. The hotel is located in Bandra-Kurla Complex (BKC), wrote DNA India.
In 2006, Accor had invested INR70 crore to acquire a 40% interest in the 310-room BKC structure. At that time, the total cost of the project was approximately INR475 crore. But because of delays in its transition towards operations, the total cost rose to more than INR700 crore. Accor then had to invest an additional sum to maintain its 40% holding. Based on the overall cost, the said investment is likely to be between INR280 crore and INR300 crore, the report detailed.
Also, the French company is undergoing a major restructuring in its operations. Accor is folding the Sofitel brand into itself. The standalone luxury brand will include all Indian Sofitel hotels including the BKC property. According to another source, Accor plans to bring together all its luxury brands in one office in Singapore, the report explained.
In addition, the hotel may also undergo a brand change. The new investor would want to make the said hotel operationally viable by having a new hotel operator or brand, DNA India reported.
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