Prestige Estates Projects

Weak residential sales, low hotel occupancy add to worries

Office property segment is expected to fare better compared with others, though new leasing is expected to come down sharply. Hotels are also expected to see sharp drop in revenues.

According to the proposal, the hotels in the pipeline will include a range of Marriott brand portfolios such as JW Marriott, Tribute Portfolio and Sheraton

The real estate sector has been struggling for the last three years and has not revived since demonetisation and the introduction of good and services tax (GST).

In its last 32 years of operations, the Bengaluru-based Prestige Group has completed 236 real estate projects comprising nearly 125 million sq ft of developable area, mostly in south India

The stock was 8% to Rs 324 on the BSE in noon deal after the company announced that it will acquire 66.66% stake in a group company, Prestige Projects, for Rs 324 crore.

On Thursday, it reported 58 per cent fall in consolidated net profit at Rs 47.79 crore for the quarter ended June on lower sales