Delta repurposes residential project in Panjim into a resort hotel to tap upscale demand

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Delta Corp, India’s only listed casino operator informed the stock exchanges on 9 January that the Board has approved repurposing of a residential project located in Miramar, Panaji, Goa into a resort hotel. The project is implemented through Marvel Resorts Private Limited (MRPL), a wholly owned subsidiary of Delta.

The top casino operator said the decision was taken after recognizing the potential of the location and the demand for upscale requirement of hotel rooms, needed for the Company’s casino guests, in the area.

Delta said the decision to transform the development into a resort hotel will be made maintaining the integrity of the existing structure and maximizing its potential as a hospitality establishment which will be subject to approvals from local regulatory bodies. The funding of the project will be from internal accruals, the casino operator said. In a related development, the company has announced an investment of Rs. 100 crores in real estate sector entity Peninsula in November 2023.

It is worth noting that Delta in its financials for quarter ended December 2023 logged 59.34 per cent year-on-year drop in consolidated net profit at Rs 34.48 crore for the December quarter compared with a net profit of Rs 84.82 crore in the corresponding quarter last year.

In a footnote alongside its December quarter numbers, Delta Corp said that on September 27, 2023, the holding company and its two subsidiary companies received show cause notices from the Directorate General of GST Intelligence (DGGI), Hyderabad, for alleged short payment of Goods and Services Tax (GST) aggregating to Rs 16,822.9 crore for the period July 1, 2017, to March 31, 2022. On October 28, 2023, another subsidiary of the company received a GST show cause notice aggregating to Rs 6,384.32 crore for the period July 1, 2017, to November 30, 2022, from DGGI, Kolkata.

The company said the group has filed writ petitions and obtained stay from respective High Courts.