Kanakia Group arm Cineline India sells hotel property in Goa for Rs 270 crore

Realty developer Kanakia Group’s listed movie exhibition company Cineline India has sold its hotel property Hyatt Centric in Goa to Sparsh Vidhyut at an enterprise value of Rs 270 crore. The hotel asset was owned by Cineline India’s wholly owned subsidiary R&H Spaces.

The monetization has helped Cineline India to reduce its debt by Rs 120 crore pertaining to the hotel asset at subsidiary level, the company said in a release.

Cineline India is planning to utilize the sale proceeds to fully repay its outstanding debt of Rz 108 crores related to the film exhibition business, achieving a debt-free status. The remaining surplus will be allocated towards expansion of the film exhibition business, the company said.


“With debt to be fully repaid, we would strengthen our financial position and generate consistent free cash flow, which will be reinvested to drive business growth. By leveraging innovative strategies such as expanding screens through a low revenue share or profit-sharing model with developer-funded capex, we are well-positioned to capitalize on the anticipated box office revival, unlocking significant upside potential,” Ashish Kanakia, CEO of Cineline India.

Since the launch of the film exhibition brand MovieMAX in April 2022, the company has expanded to 77 operational screens, with an additional 82 screens tied up.

The company has monetized non-core real estate assets worth Rs 351 crores over the past two years including the sale of this hotel asset, Eternity Mall in Nagpur for Rs 60 crores, and two commercial spaces in Mumbai for Rs 21 crore. The proceeds have been strategically utilized to expand the film exhibition business and fully repay the company's debt.