The licensing rights have been granted for a period of 33 years.New Delhi: The Connaught, a premium hotel in Lutyen's Delhi, was successfully acquired by Tata's Indian Hotel Company Limited (IHCL) in an e-auction conducted by the New Delhi Municipal Council (NDMC) today.

"The successful bidder is the Taj group which will pay 31.80 per cent of the Gross Turn Over (GOT) or Rs 5.868 crore per annum, whichever is higher.

This current auction has yielded more than the double revenue that the NDMC was getting from this hotel," a senior NDMC official said. The licensing rights have been granted for a period of 33 years.

The property at 37, Shaheed Bhagat Singh Marg has about 85 rooms, 3 banquet halls and one swimming pool and is situated adjacent to the Connaught Place. "The licence fee out of this public property will help in boosting the revenue and financial potential of the NDMC which will help in financing the public projects," the official added.

"We are extremely delighted to win the bid for The Connaught, New Delhi.

The hotel is located strategically in Lutyens Delhi, the city's most coveted address, conveniently located in the heart of capital," an IHCL spokesperson said. "It will aptly fit into our new SeleQtions brand, which is a collection of 'named hotels' that are unique and one of a kind," the spokesperson said.

The NDMC had last year decided to auction The Connaught and re-auction Asian Hotel, after they were sealed by it in 2015 due to non-payment of licence fees dues.

In January last year, the Asian Hotel was e-auctioned, fetching Rs 45.5 lakh per month as licence fee, the highest-ever for the agency.

But, the bidder later refused to take the property necessitating a re-auction. (Except for the headline, this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)