After Hotel Leelaventure and Kamat Hotels, Bangalore-based hotel chain Royal Orchid Hotels is going in for restructuring of its debt. On Tuesday, the company informed the BSE that its board of directors has accorded its consent for making a reference to the corporate debt restructuring (CDR) cell for rejigging its debt.
The company has been looking at selling its properties to trim debt. In April last year, it had sold its hotel property in Ahmedabad to Gurgaon-based SAMHI Hotels |for an amount of R67 crore as part of its debt-reduction plan.
For the quarter ended September, the company reported a consolidated net loss of R12.11 crore on a total income of R36 crore. Its debt at the end of the September quarter was R206 crore. Cash and cash equivalents stood at R37 crore, as per Bloomberg data.
Royal Orchid operates 21 business and leisure hotels in 16 popular destinations.
