Though the company has not yet decided on the exact amount of equity to be divested, company sources said it may be in the region of 20-25 per cent. Alternatively, the company may go divest equity through an offer for sale. The offer may come by the year-end, sources added. AB Hotels corporate financial advisor, J C Luther confirmed that the company is weighing the options. "No firm decision has been taken on the issue yet", he added.

Luther said the company is awaiting clearance from the Securities & Exchange Board of India. As per the SEBI guidelines, a company can come out with an IPO if it has declared profit for three consecutive years before the offer.

AB Hotels recorded profit in the very first year of its operations, said sources. For the current financial year ending march 2000, the company expects to record a turnover of around Rs 58 crore. Last year, the company registered turnover of Rs 52 crore.

Carlson Hospitality India Inc, parent company of Radisson Hotels, plans to acquire equity stake in leading travel houses and agencies. The company, which holds around 22 per cent equity stake in Thomas Cook India, has initiated talks with several travel companies in this regard, said CHII vice-president (Asia) KB Kachru.

CHII has also chalked out an ambitious expansion plan for India which includes putting up 12 new Radisson hotels, seven Country Inns and Suites hotels and three TGI Friday's outlets - one each in Bangalore and Mumbai and another one in Delhi, over the next few years. Besides this, the company is looking at setting up resorts destinations under all of its brands, said Kachru.