Mahodadhi Palace Pvt Ltd, wholly owned subsidiary of Kamat Hotels India Ltd, signs Joint Development Agreement

Kamat Hotels (India) Limited (KHIL), through its wholly owned subsidiary Mahodadhi Palace Private Limited (MPPL) has signed a Joint Development Agreement (JDA) with Constrict Hospitality Private Limited to develop and construct a Five Star Luxury Heritage Hotel with 120 rooms at Mahodadhi Palace, Puri in Odisha.

Constrict Hospitality Private Limited is a registered company led by Mrs. Baijayanti Sahoo, an Indian inhabitant. For this proposed development, Constrict Hospitality Private Limited will be a Special Purpose Vehicle (SPV). Mrs. Sahoo has a rich experience in Hospitality, Infrastructure Building & Construction Majors, Power Generators, among others, through various ventures.

Out of 120 rooms, Mahodadhi Palace already has structure of 33 rooms, and 87 rooms will be constructed additionally. Post project completion, Mahodadhi Palace will become an ultra-luxurious property with 120 rooms and a Five-star multi-cuisine restaurant.

The cost of the project is estimated at ₹75 Crores. Of which, ₹1 Crore will be paid by Constrict Hospitality/Mrs. Sahoo to KHIL as the signing fee for this JDA.

Commenting on this important development, Dr. Vithal Venketesh Kamat, Executive Chairman and Managing Director of Kamat Hotels (India) Ltd. said, "We are delighted enter into this Joint Development Agreement with Constrict Hospitality. This is in line with our vision to enhance our portfolio while showcasing the best of what Odia Culture has to offer. Being located at Jagannath Puri it fulfills what we see is the need for high end religious and wedding tourism which we are seeing with our experience at Ayodhya."

Additionally, Mrs. Baijayanti Sahoo, Director of Constrict Hospitality Private Limited said, "I am extremely pleased to associate with KHIL to develop a property which will be an iconic landmark in Puri and the state of Odisha. Kamats are already well known in Odisha and we look forward to growing with them in the East starting with Puri."

The development will happen in three phases as mentioned below:

Phase I - Five-star multi-cuisine restaurant - Within 12 months from signing the JDA

Phase II - Fully complete and operationalize 33 rooms & Complete civil structure of 87 rooms

The total outlay of ~₹26.5 Crores for phase 1 and phase 2 will be invested by Constrict Hospitality.

Phase III - Fully complete and operationalize the remaining 87 rooms - Within 15 months from signing the JDA - ~₹47.5 Crores (To be evaluated during the course)

Shares of Kamat Hotels (I) Limited was last trading in BSE at Rs. 333.40 as compared to the previous close of Rs. 340.00. The total number of shares traded during the day was 31907 in over 2011 trades.

The stock hit an intraday high of Rs. 347.85 and intraday low of 325.00. The net turnover during the day was Rs. 10728253.00.

Source : Equity Bulls

Keywords

KamatHotelsIIndia INE967C01018 MahodadhiPalace JDA