JP Morgan to invest in Viceroy project

Viceroy Hotels (VH) has moved a step closer to completing its upcoming hotel projects, having tied up an investment from JP Morgan.

JP Morgan India Property Mauritius Company will take 49% stake in Viceroy’s Bangalore project for Rs 70 crore.

The 300-key hotel project has an outlay of Rs 311 crore.

The investment company has already sent a letter of intent to make the investment and got the board’s approval, a Viceroy statement said.

As per the plan, Viceroy will spin off the Bangalore project into a wholly owned subsidiary. With the board approving the spin-off proposal, the company is now working towards incorporating a company called Viceroy Bangalore Hotels Pvt Ltd.

KPMG has been appointed as a consultant for this restructuring process, while L V V Iyer and Associates has been appointed as the solicitors.

Viceroy had been working on a plan to raise up to Rs 150 crore through various modes to partially finance its Rs 1,000 crore expansion plan.
In Chennai, Viceroy is developing the JW Marriott, a seven-star hotel with 387 rooms, with an outlay of Rs 620 crore.