Macrotech Developers Secures Acquisition of Mumbai's Iconic Tulip Star Hotel

Mumbai

The bankruptcy court has granted approval for Macrotech Developers Ltd to acquire V Hotels Ltd, which owns the well-known Tulip Star Hotel, previously recognized as the iconic Centaur Hotel. Located in the upscale suburb of Juhu in Mumbai, Macrotech Developers, a Lodha Group company, has agreed to purchase the property for approximately Rs 890 crore.

Financial Arrangements and Bidding Competition

V Hotels, which had accumulated liabilities exceeding Rs 2,500 crore, saw its financial lenders approve Macrotech’s resolution plan in June 2023. This plan was favored unanimously over bids from competitors such as Oberoi Realty, GHV (India), and K Raheja Corp Real Estate. According to the resolution plan, Macrotech will pay Rs 78 crore upfront to secured financial creditors, with the balance due in two subsequent payments of Rs 405 crore each within specified timelines.

Historical Context and Legal Representation

In 2002, V Hotels acquired the Centaur Hotel Juhu Beach from the Hotel Corporation of India as part of the government’s disinvestment program, as conveyed by the company's resolution professional Anish Niranjan Nanavaty through senior advocate Pradeep Sancheti and counsel Pulkit Sharma. Advocate Rohit Gupta represented Macrotech during these proceedings.

Strategic Location and Redevelopment Potential

Ashish Pyasi, a partner at Aendri Legal, noted that the strategic location of the hotel is a significant factor that attracts bidders involved in insolvency resolution processes. The hotel is situated on a 6.1-acre land parcel along Juhu Tara Road in the Vile Parle area, featuring about 367 keys, restaurants, large banquets, and a retail component, though it is currently non-operational. The property holds potential for redevelopment into residential, commercial, or retail spaces, or a mix of these asset classes.

Additional Assets

Beyond the hotel property, V Hotels also owns 11 residential apartments in Mumbai’s western suburbs. The account of Tulip Star Hotels was declared non-performing in December 2008, with the Bank of India leading a consortium of lenders and later assigning its receivables to an asset reconstruction company.