Royal Orchid Hotels Limited, a leading hospitality company in India, has executed a landmark land lease renewal contract for its property in Mumbai. This key step guarantees the sustained operation of one of its prime assets, strengthening its position further in the fast-growing hospitality sector.
Key Points:
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Lease Renewal Details:The deal comprises the extension of the lease on a prime property at Marol, Andheri (East), Mumbai. The leased premises comprise 4,871.30 square meters with a hotel building having ample facilities like basements, higher floors, a gymnasium, spa, swimming pool, etc.
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Lease Term and Finances:The lease period is for 25 years with a lock-in term for the Lessor for the entire duration. First five years of monthly lease rent is ₹1.52 crore, which will rise incrementally over the next few years.Royal Orchid Hotels has paid a refundable security deposit of ₹10 crore.
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Operational Plans:The hotel will be run under the 'Iconiqa' brand or any other brand that Royal Orchid Hotels decides. This fits into the company's strategy of increasing its high-end offerings.
Strategic Importance:
This renewal guarantees smooth running of operations at one of Royal Orchid's key Mumbai locations, consolidating its hold on an important market.
Future Developments:
The company is going ahead with leased hotels and revenue-sharing deals to increase its portfolio throughout India.
Sources: Lease Deed Document - Royal Orchid Hotels Marketscreener News on Lease Renewal Reuters Announcement on Lease Renewal