Australian fund to invest A$40 in Chennai hotel firm

CHENNAI: Chennai-based Asiana Hotels & Resorts has tied up with Australian fund manager Banyan Fund Management for A$40 million infusion to fund its upcoming projects in Sriperumbudur, Pillaiyarpatti (Karaikudi) and Rameshwaram, company.

The company has a land bank in excess of 300 acre in the three places put together, Asiana Hotels managing director and CEO Shri Sriharan told ET.

Construction work for the Sriperumbudur project, with a total of 219 hotel rooms and serviced apartments spread over 2.25 acre, will commence in a fortnight, he said, adding work on the other two would begin before the end of the year.

The Rameshwaram property, where Asiana has 300 acre, would be developed as a resort with 240 rooms and 140 villas in the first phase and. At Pillayarpatti���s 4.25-acre property, the company is planning 78 rooms.

"All three will be mid-market hotels targeting both the business and leisure traveller, and will be ready in two years time," Asiana Hotels & Resorts director S Alagurajan said.

All three projects are together estimated to cost A$100 million (around Rs 380 crore at today���s exchange rates). The company has received A$5 million and is awaiting another A$10 million from Banyan to start work. Its is in final stages of discussion with State Bank of India for the balance A$60 million.

In the next five years, Asiana is targeting 25 hotels across Tamil Nadu and is scouting for land in Tier II & III towns. Asiana currently operates a 114-room five-star business hotel on OMR in Chennai and has been operational since October 2007.