Hospitality firm Royal Orchid Hotels Ltd today said it has sold a hotel property in Ahmedabad to Gurgaon-based investment firm SAMHI Hotels for Rs 67 crore as a part of a debt reduction plan.

"We have sold the Ahmedabad hotel to SAMHI for around Rs 67 crore in order to reduce debt. The deal is part of a restructuring plan wherein we will focus more on management contracts than ownership," Royal Orchid Hotels Chairman and Managing Director Chander Baljee told reporters. 

The 104-room hotel was owned by the company's subsidiary Royal Orchid Ahmedabad Pvt Ltd.

The proceeds from the sale will be used to pare debt, following which the company's overall debt will be around Rs 225 crore, he said.

Baljee, however, said Royal Orchid will continue to manage the Ahmedabad property after the sale.

When asked if the company was looking to divest stake in other properties going ahead, Baljee said: "We are open to selling other properties but it has to happen at a right price. We are not desperate otherwise."

SAMHI is a hotel development and investment company which has partnerships with Chicago-based Equity International (EI), Marriott International and GTI Capital Group.

Royal Orchid currently operates 20 hotels with 1,800 rooms across India in the upscale and mid-scale segments.

The company's brands are Hotel Royal Orchid (five-star), Royal Orchid Central (mid-market), Royal Orchid Suites and Resorts and the newly launched 'Regenta'.

Royal Orchid Hotels' scrip closed at Rs 52.95 per share, up 5.90 per cent from the previous close on the BSE.