Indian Hotels Company Ltd (IHCL) will will pick up an 85 per cent stake in ELEL, the company which holds a long-term sub-lease of the land on which Sea Rock is built. IHCL will demolish Sea Rock and develop a hospitality structure, which would also house a convention centre, besides commercial and retail outlets. It also has plans to integrate the site with Taj Lands End in Bandra. The acquisition is with an option to further raise the stake to 100 per cent. The hotel is not fully functional after the 1993 bomb blasts.
The funds for the project would come from the Rs 1,400-crore rights issue made last year and also from the liquidity in the system, according to Mr Anil Goel, Chief Financial Officer, Indian Hotels.