Real Estate developer, DLF Limited is selling its hotel subsidiary - DLF Hotels & Hospitality to Square Four Housing And Infrastructure Private Limited for Rs550Cr in order to cut debt.

DLF completed the sale of its IT Park in Noida to IDFC and is planning for stake sale in Aman resorts and looking to sell off it's Pune IT park which was developed with Akruti.

Earlier this month, DLF Hotel Holdings Ltd - subsidiary of the company, which holds 74% stake in the JV - DLF Hotels & Hospitality Ltd, acquired remaining 26% stake for Rs120Cr from Aro Participation and Splendid Property Company that is affiliated of Hilton International Co.

DLF Hotels & Hospitality had planned to build and develop 75 hotels in India. In 2008, DLF and Hilton had signed management agreements for 7 new hotels, taking the total number of new hotels under the alliance to 16 comprising 3,500 rooms across the country. Currently the JV has only 4 undeveloped land sites in Kolkata, Chennai, Mysore and Thiruvananthapuram.

DLF has been selling its non-core assets such as hotels and plots to cut its huge debt that stood at Rs22,519Cr as on September 30. So far, the company has raised Rs 3,480Cr from sale of non-core assets. Earlier this year, DLF had announced plans to raise Rs 7,000Cr in the next 2-3 years. The company is now expecting to cut its debt burden to about Rs 10,000Cr by 2013.

Square Four will develop the Kolkata and Chennai land parcels for hotel cum commercial cum residential projects while the land in the other two centres - Mysore and Thiruvananthapuram - will be developed as pure luxury hotels. It is also in talks with Four Seasons and others to form strategic alliances for developing all four hotel properties.

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