Mayfair Group Acquires Oberoi's Palm Beach Hotel For INR 100 Million

Date:15/09/11,

M&A,

Domestic Deal,

Mayfair Group of Hotels has acquires Oberoi Group's Palm Beach property at Gopalpur, Orissa for INR 100 million. The property is spread over an 11-acre plot.

Mayfair will invest another INR 250 million to renovate the property and increase the room inventory to 35 from 19 currently.

The Oberoi Palm Beach was the third oldest property of Oberoi Group, after those in Shimla and Kolkata.

It was acquired by MS Oberoi in 1942 from an Italian entrepreneur and was in operation since 1947 before being closed down in 2005 due to maintenance problems.

Oberoi Group wanted to sell or lease the property as any significant expansion is not possible Coastal Regulation Zone regulations. It was leased out to Bhubaneshwar based hotelier for a few years befor the sale.

Mayfair has six other properties in like Bhubaneswar, Goa, Darjeeling, Puri and Gangtok. Besides, three properties are under construction in Kolkata, Puri and Satapada.