On February 9, DB Realty announced that it will sell its hospitality division as a stand-alone entity. The stock increased by more than 2 percent as a result of the announcement.
The company stated in an exchange filing that “the Board of Directors of the Company at its meeting considered and in principle approved the proposal to demerge its hospitality business.”
A completely owned subsidiary of Goan Hotels & Realty Private Limited, a subsidiary of BD and P Hotels (India) Private Limited, and an associate of the company, Bamboo Hotel And Global Centre (Delhi) Private Limited, will all be included in the demerged entity’s hotel business and assets.
According to DB Realty, the demerger will enable a differentiated strategy to capitalize on the enormous potential of the Indian hospitality sector, attract a specific group of investors, partners, collaborators, and leadership talent focused on the hospitality business, and unlock the value of the real estate and hospitality business for shareholders.
