Mahindra Holidays has started to set out its plans for the rejuvenation of TATOC platinum affiliate Holiday Club Resorts (HCR) after raising its stake in the company to 88 per cent earlier this year. According to The Economic Times of India, Mahindra Holidays – the hospitality arm of Mahindra Group – has developed a turnaround strategy for the Finland-based timeshare operator, which has resorts in Finland (24), Sweden (two) and Spain (six).
Mahindra Holidays originally acquired an 18.8 per cent stake in HCR last year, and recently raised it to 88 per cent, taking its total investment in HCR to Rs 350 crore.
Arun Nanda, chairman of Mahindra Holidays, said the company plans to pare the debt by consolidation of HCR’s assets and infusion of equity, according to the Economic Times report.
He told the paper that the company would be taking “aggressive steps” to sell older inventory and reduce the debt. Other assets including shopping malls and a golf courses would potentially be sold to raise liquidity, and Mahindra Holidays would also invest more money to “acquire more land and partly to reduce debt”.
After consolidating assets, Nanda said the company would look at further acquisitions in Europe.