Indian real estate major DLF has signed a Rs1.2bn ($23.42m) agreement to acquire the remaining 26% stake in its joint venture company DLF Hotels & Hospitality (DHHL) from an affiliate of Hilton International, taking its total holding in DHHL to 100%.
In a filing with the Bombay Stock Exchange, DLF acquired an additional 26% equity shares of DLF Hotels from Aro Participation and Splendid Property Company, an affiliate of Hilton International.
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A DLF company spokesperson said that the remaining stake was bought so it could take complete ownership of the company and its underlying assets, including in-built hotel sites, with a view to monetise them.
"This is part of DLF’s ongoing non-core divestment strategy" the spokesperson said.
The company’s net debt rose to Rs225.19bn, up by Rs10bn, during the second quarter of 2011.
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It aims to cut its debt to Rs190bn by the end of this financial year, and to Rs100bn by 2013 through the sale of its non-core assets.
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By GlobalDataIn 2006, DLF and Hilton set up the 74:26 DHHL joint venture to build 75 hotels in India over the next five to seven years.
Hilton manages one hotel jointly with DLF in Delhi, which it will continue to do.
Recently, DLF announced that it would sell its entire stake in Galaxy Mercantile, a joint venture of DLF Home Developers and Infrastructure Development Finance Company.
