Five-Star Deluxe International Hotel with State of the art Technology
VLS provided private equity capital to Sunair Hotels Ltd. to set up the first high-end hotel in India. Sunair set up the Metropolitan in the year 1999-2000 in collaboration with Nikko International Hotels of Japan. Metropolitan is a five star deluxe hotel in New Delhi located near the city’s central business district. VLS supported the venture in multiple ways.
The investment thesis was based on the acute shortage of high-end hospitality space in India especially in New Delhi. India’s hotel industry has grown significantly in the last 10 years, with both inventories of rooms, occupancy rates and ARR’s (average room rentals) on an upswing due to the widening gap between demand and supply of rooms in the major cities in India.
In 1995 VLS invested in 7,000,000 Equity shares of Sunair Hotels Ltd. Subsequently, in the year 2001, VLS subscribed to 2,594,824 Equity shares by way of Rights. As on date VLS holds 9,594,824 Equity shares of the company which is about 24.15% of the total paid-up capital of Rs. 397.50 million.
Today, The Metropolitan Hotel & SPA offers guests a unique blend of Indian and Asian hospitality. Designed for the international business and upscale leisure traveler, the hotel is distinguished by understated elegance. A five-star deluxe international class luxury hotel combining hospitality and warmth with state-of-the-art technology.
Presently, The Metropolitan Hotel & SPA a fine blend of style & substance, is a member ofGreat Hotels of the World, Luxury Collection, an international hotel marketing brand. Looking at the location of the Hotel in Lutyen’s Delhi, close to the main business district, the present true intrinsic value of the Hotel Company may be much more so as to make the investment of VLS a very profitable one.