The legendary Taj Mahal Hotel in New Delhi, also famous as the Taj Mansingh because of its geographic placement on Mansingh Road in Lutyen’s, Delhi, is up for e-auction by the New Delhi Municipal Corporation (NMDC).
As per TOI sources, the lowest reserve price for the Taj Mansingh has been fixed at Rs 32.2 crores. The tender also underlines that there will be a minimum revenue share system of 17.25% of the total revenue and a least assurance fee of around Rs 3 crore monthly, depending on escalation, to be paid by the bidder who succeeds.
The NDMC has made it clear that it is only looking for bidders who mean business, through enforcement of stringent guidelines that permit groups with a minimum of 500 rooms in 5-star holdings, along with a tidy net worthiness and functional income from hotels, to participate in the auction.
Presently, the Taj Mansingh is being taken care of by The Indian Hotels Company, a company of the Tata Group. However, NDMC owns the property.
According to a source of TOI, the Taj Group believes that its immaculate track record of managing the hotel should be taken into consideration by the NMDC when it takes a decision on bidding for hassle-free and successful functioning of the hotel.
Among other bidders that are likely to be part of the auction are the Oberoi Group, ITC Hotels and K Raheja Group, owning luxury hotels within the vicinity of Mumbai, such as the Renaissance in Powai, J W Marriott in Juhu and Sahar, Four Points by Sheraton in Vashi; Marriott Whitefield in Bengaluru, and The Westin in Hyderabad.
Previously, the auction was to be held in September 2017, but later, it was deferred to January 30, 2018. The bidder that succeeds will get a letter of award from NDMC on February 14, 2018. In keeping with the norms, the council will be revising the license fee after 33 years.