ITDC has high "occupancy"

ITDC has shown an almost 15 times surge in volumes today and the stock price rose 14% at Rs.657.90.

The market is happy with the news that it has signed an MoU for transfer of Lalitha Mahal Palace Hotel, Mysore to State Government of Karnataka.

This comes in the wake of the Finance Minister’s announcement yesterday that the Govt plans to sell three more ITDC hotels to states – Jaipur, Mysore and Itanagar.

Hotel Jaipur Ashok will be transferred to the government of Rajasthan.

Two days ago, ITDC had stated that it has signed an MoU with Arunachal Pradesh Industrial Development & Financial Corp Ltd (APIDFC), Donyi Polo Ashok Hotel Corporation (DPAHCL) and the government of Arunachal Pradesh (GoAP) for transfer of 51% equity stake of ITDC in DPAHCL, the joint venture subsidiary company, to APIDFC/GoAP. 

ITDC runs 16 hotels including Ashok and Samrat Hotels in New Delhi of which 11 are loss-making. The idea is to ultimately sell 14 of its hotels to better its financial health.