TIL Desk/Business/New Delhi/ The first year annual licence fee for Taj Mansingh hotel in the national capital could be set in the range of Rs 30 crore to Rs 34 crore as the property goes up for auction, according to sources in the know.
This would be treated as the minimum guaranteed annual licence fee for the hotel entering into a fresh 33-year lease agreement. The licence fee will be increased every year based on the annual Wholesale Price Index (WPI), as suggested by SBI Caps, which is conducting the auction.
The minimum annual revenue share, or the floor price, is likely to be set at 17-18 per cent, sources said.This is the percentage of a company’s revenue that will have to be shared with the New Delhi Municipal Council (NDMC), which owns the 3.78 acres on which Taj Mahal Hotel is located on 1, Mansingh Road.
The bidder who quotes the highest revenue share will emerge winner. The financial bids will be stepped up gradually till the auction ends.
