Jan. 02--MUMBAI -- Hyderabad-based hospitality chain Viceroy Hotels Ltd has concluded a deal to sell its projects in Chennai, including a luxury hotel and homes under construction, to Ceebros Hotels Pvt. Ltd for Rs.480 crore.
The 350-room hotel is being developed under the JW Marriott brand.
The announcement on the stock exchanges on Wednesday sent the company's stock surging 13.02% to Rs.21.70, while the benchmark BSE Sensex fell 0.14% to 21,140.48 points.
The company decided on 8 May to sell its Chennai projects to Ceebros, a Chennai-based property developer which operates two hotels projects in the city under the brand name Raintree Hotels.
Viceroy Hotels has been in the process of reducing its debt by selling stakes in projects in Chennai and Hyderabad. It had a debt of Rs.500 crore as of 31 March 2012.
It struck a deal last year to sell the hotel project to Mahal Hotel Pvt. Ltd while the residential project was to be sold to Esteem Housing Developers Pvt. Ltd for a total of Rs.500 crore, but it fell through.
Viceroy Hotel did not respond to phone calls for a comment on the sale.