Indian Hotels wins bid for Andaman beach resort

Indian Hotels Company has won the bid to develop a resort on Radhanagar beach at Havelock Island in Andaman & Nicobar islands, said Debashish Sengupta, managing director of ICICI Winfra, a merchant banker handling the bidding process.

"Indian Hotels has won the project to set up resorts spread over 45 acres on Radhanagar beach in the auction conducted by Andaman & Nicobar Islands Integrated Development (ANIIDCO)," Sengupta said. ICICI Winfra is the consultant appointed by ANIIDCO for the project.

In addition to the bid price of Rs 4 crore, Indian Hotels will have to pay an annual lease rental of Rs 2.2 crore plus 3 per cent of the project revenue to ANIIDCO.

"In its proposal, Indian Hotels said it will invest Rs 100 crore in developing close to 80 five-star cottages and related infrastructure," Sengupta said.

"Indian Hotels will have access to 250 m of Radhanagar's white sand beach, with the Andaman and Nicobar authorities assuring limited public access to that beach," he said.

Other companies that had showed interest in the project include ITC, DLF Hotel Hilton, East India Hotels, and Apeejay Surrendra Park Hotels, he said.

"Park Hotels' bid was rejected after it failed to meet pre-qualification requirements," Sengupta added.

The project involves building eco-friendly resorts at Radhanagar, hailed by Time magazine as one of Asia's best beaches.

Radhanagar is a virgin beach with no competing hotel properties located there currently.

While a part of Havelock Island was devastated by the tsunami in December 2004, Radhanagar beach, which is separated by a hillock, was not impacted.

Shares of Indian Hotels today closed at Rs 132.55 on the National Stock Exchange, down 4 per cent from Tuesday.