Meanwhile, the BSE Sensex was provisionally down 29.53 points, or 0.16% to 18,208.78 EIH (up 0.97%), EIH Associates Hotels (up 9.98%), Hotel Leela Venture (up 4.86%), Indian Hotels Company (up 1.53%), Gujarat Hotels (up 2.70%), Viceroy Hotels (up 3.01%), and Advani Hotel (up 0.34%), gained. Hotel stocks have been on a roll ever since the Mukesh Ambani controlled Reliance Industries (RIL) after market hours on Monday, 30 August 2010, said it had bought a 14.12% stake in EIH from EIH promoters in an off-market deal valued at Rs 1,021 crore, or an average price of Rs 184 a share. The deal was executed at a 22.09% premium over the stock's closing price of Rs 150.70 on 30 August 2010. RIL said on 1 September 2010 it bought additional 26.7 lakh shares or about 0.68% stake in EIH, raising its stake in the hotel chain to 14.8%. RIL has said that the investment in EIH has been made as the Oberoi family has developed Oberoi Hotels brand as a premier international brand in the luxury hospitality sector and therefore EIH has excellent future prospects. RIL said it has full faith in current EIH management. It added that there will be no change in management, operation or control of EIH as a result of the acquisition of shares by RIL. Incidentally, ITC, which also is among the leading players in the Indian hospitality industry, holds 5.88 crore shares, representing 14.98% stake in EIH (as on 30 June 2010). Powered by Capital Market - Live News |