“The successful bidder is the Taj group which will pay 31.80% of the Gross Turn Over (GOT) or Rs 5.868 crore per annum, whichever is higher. This current auction has yielded more than the double revenue that the NDMC was getting from this hotel,” a senior NDMC official said. The licensing rights have been granted for a period of 33 years.
The property at 37, Shaheed Bhagat Singh Marg has about 85 rooms, 3 banquet halls and one swimming pool and is situated adjacent to Connaught Place.
“The licence fee out of this public property will help in boosting the revenue and financial potential of the NDMC which will help in financing the public projects,” the official added.
Earlier, the NDMC has announced the e-auction of three of its premium hotels in Lutyen’s Delhi, including the five-star property Taj Mansingh, for a period of 33 years.
The other two hotels are The Connaught and Hotel Asian International. The civic body held a pre-bid meeting for the three properties last month and the submission period of bids is from 15 May-7 June.
Taj Mansingh was earlier given to Tata Group’s Indian Hotels Co. Ltd (IHCL) on a lease for 33 years, which ended in 2011. The company was since given nine temporary extensions. However, the civic body could not auction the property then as it was tied up in a legal battle with IHCL, which has been operating the hotel property since 1978.
The NDMC had last year decided to auction The Connaught and re-auction Asian Hotel, after they were sealed by it in 2015 due to non-payment of license fees dues.
In January last year, the Asian Hotel was e-auctioned fetching Rs 45.5 lakh per month as the licence fee, the highest-ever for the agency. But, the bidder later refused to take the property necessitating a re-auction.