Bharat Hotels eyes Rajasthan, to spend over Rs 700 cr
Plans to spend around Rs 300-500 crore on a Tourism City on Jaipur-Ajmer highway.
By INDIATIMES NEWS NETWORK |
NEW DELHI: Bharat Hotels has drawn up a plan to spend about Rs 700 crore in the next three years for its new hotel projects. Talking to ET Online at a conference on hotel industry organised by CII, Lalit Suri, chairman, Bharat Hotels said that he would focus on several projects in Rajasthan in the near future. "Rajasthan has not been fully exploited”, he said.
Suri said that he would focus on several projects in Rajasthan in the near future. "Rajasthan has not been fully exploited”, he said.
Enumerating his plans in Rajasthan, Suri said: “A luxury hotel of 200 rooms in Jaipur would be up and running in 18 months”. This would be at a cost of Rs 150 crore including the cost of land. The 12,000 square meters land for this project was bought by him last week at a reserve price of 25 crore from the Rajasthan government.
He plans to spend around Rs 300-500 crore on a Tourism City on Jaipur-Ajmer highway with integrated tourist facilities including serviced apartments. In addition to this, Laxmi Vilas Palace which is owned by Bharat Hotels will be expanded to add 50 more rooms at a cost of 30 crore.
Suri also said the Kolkata property will be ready by next year.
Suri said that right now these projects will be in the five-star segment and later on he might consider getting into the three-star segment.
The funding for all these projects will come essentially from bank loans. Mr Suri, did not rule the possibility of private placement and IPO route. The private equity could be as much as 10 per cent, he said.
It plans to privately place 10-15 per cent equity with venture capitalists following which the promoter shareholding in the company will come down by about 10 per cent.
Suri said that he would focus on several projects in Rajasthan in the near future. "Rajasthan has not been fully exploited”, he said.
Enumerating his plans in Rajasthan, Suri said: “A luxury hotel of 200 rooms in Jaipur would be up and running in 18 months”. This would be at a cost of Rs 150 crore including the cost of land. The 12,000 square meters land for this project was bought by him last week at a reserve price of 25 crore from the Rajasthan government.
He plans to spend around Rs 300-500 crore on a Tourism City on Jaipur-Ajmer highway with integrated tourist facilities including serviced apartments. In addition to this, Laxmi Vilas Palace which is owned by Bharat Hotels will be expanded to add 50 more rooms at a cost of 30 crore.
Suri also said the Kolkata property will be ready by next year.
Suri said that right now these projects will be in the five-star segment and later on he might consider getting into the three-star segment.
ADVERTISEMENT
The funding for all these projects will come essentially from bank loans. Mr Suri, did not rule the possibility of private placement and IPO route. The private equity could be as much as 10 per cent, he said.
It plans to privately place 10-15 per cent equity with venture capitalists following which the promoter shareholding in the company will come down by about 10 per cent.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
