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Published on November 16, 2007

A source said the deal was being concluded at an extremely conservative valuation. In addition to this pay-out, DLF will assume debt of about $220 million as part of the deal. That amount will remain on the Aman Resorts' balance sheet and be paid off from its future revenues.

The 20-year-old Aman Resorts has 18 operational properties under its belt in Indonesia, Cambodia, Sri Lanka, Morocco, Bhutan, India, the Philippines, the United States, French Polynesia and France. The group also operates a resort in Thailand: the Amanpuri, with 30 villas located in Phuket.

All Aman Resort properties have a room tariff of

more than $600 a night, giving it a hugely exclusive tag. Since very few of these properties have more than 50-60 rooms and villas, the chain functions on the lines of a lifestyle resort for the rich and famous.

DLF announced a month ago it intended to raise $750 million abroad to acquire and develop foreign properties. Part of the proceeds will be used to fund the Aman Resorts acquisition.

Singapore's Silver Link Holdings holds a majority stake in Aman Resorts and will completely exit the company after the acquisition. It is believed the founder, Adrian Zecha, will also move on from the chain.

The acquisition also entails DLF taking over a prime property in Delhi's Lodhi Road. Aman Resorts bought this property from India Tourism Development five years ago.

The old building has been demolished, and a new one, currently under construction, should be operational in another six months.

Being developed as a super-luxury resort, room tariffs at the property are also expected to range between $600 and $700 per night, making it one of the most expensive hotels in the country.

DLF forayed into hospitality last year. It has a 74:26 joint-venture agreement with Hilton International to develop 50-75 properties in the long term.

DLF's initial roll-out plan in India includes eight to 10 luxury hotels - it has also joined with the Four Seasons Group for a property overlooking the DLF Golf and Country Club in Gurgaon - along with 25-30 business hotels and 10-15 serviced apartments.

The Nation