Puravankara plans to partner Accor for hospitality foray
Puravankara Projects is close to signing a memorandum of understanding (MoU) with France-based hospitality group Accor for the former’s first hotel project in Bangalore.
By Apurv Gupta, TNN |
MUMBAI: REAL estate company Puravankara Projects is close to signing a memorandum of understanding (MoU) with France-based hospitality group Accor for the former’s first hotel project in Bangalore, an official involved with the deal told ET.
This is part of Puravankara’s strategy to diversify into the hospitality segment. The Bangalore-based real estate developer will construct hotels on land owned by it and hand over the day-to-day management to a professional group on a profit-sharing basis.
Puravankara has plans to build two hotels in Bangalore — one super luxury and one budget.
Besides the two projects, the company is also looking at developing hotels in Kochi, Coimbatore, Mysore, Hyderabad and Chennai, said industry sources. They added that Puravankar was in talks with major hotel chains such as Hilton, East India Hotels, Ritz Carlton and Four Seasons for managing these hotels. “The company’s talks with East India Hotels have reached at an advanced stage,” they added.
When contacted, Puravankara Projects director Ravi Ramu said the company plans to diversify into hospitality segment. “We are talking to international players for high-end projects. We cannot disclose the names of the players we are in talks with,” he added.
Puravankara would be investing around Rs 1,000 crore in its hotel development project through a combination of debt and internal accruals. The company recently raised Rs 850 crore through an initial public offering with some difficulty.
Accor head of development Uttam Dave refused to comment on the deal. Incidentally, the French hospitality chain had recently announced a tie-up with Delhi-based Emaar group to manage hotels across brands. As part of its global development strategy, Accor has been aiming to open 200,000 new hotel rooms by 2010, of which 60% will be in emerging markets. Accor CEO Gilles Pelisson had recently remarked that, “India is one of the world’s most dynamic economies, with rapidly growing inbound, outbound and domestic travel sectors that we hope Accor’s development strategy will cater for.”
A number of real estate developers are planning to foray into the hospitality segment to diversify their business and also to leverage on the scarcity of hotel rooms in India. These include names like DLF and Unitech.
This is part of Puravankara’s strategy to diversify into the hospitality segment. The Bangalore-based real estate developer will construct hotels on land owned by it and hand over the day-to-day management to a professional group on a profit-sharing basis.
Puravankara has plans to build two hotels in Bangalore — one super luxury and one budget.
Besides the two projects, the company is also looking at developing hotels in Kochi, Coimbatore, Mysore, Hyderabad and Chennai, said industry sources. They added that Puravankar was in talks with major hotel chains such as Hilton, East India Hotels, Ritz Carlton and Four Seasons for managing these hotels. “The company’s talks with East India Hotels have reached at an advanced stage,” they added.
When contacted, Puravankara Projects director Ravi Ramu said the company plans to diversify into hospitality segment. “We are talking to international players for high-end projects. We cannot disclose the names of the players we are in talks with,” he added.
Puravankara would be investing around Rs 1,000 crore in its hotel development project through a combination of debt and internal accruals. The company recently raised Rs 850 crore through an initial public offering with some difficulty.
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It had to lower its IPO price band to Rs 400 – 450 per share from Rs 500 – 525 share, and extended the closing date for its issue to August 8 from August 3. The stock price of Puravankara ended at Rs 375 on Tuesday, almost unchanged over its previous close. Accor head of development Uttam Dave refused to comment on the deal. Incidentally, the French hospitality chain had recently announced a tie-up with Delhi-based Emaar group to manage hotels across brands. As part of its global development strategy, Accor has been aiming to open 200,000 new hotel rooms by 2010, of which 60% will be in emerging markets. Accor CEO Gilles Pelisson had recently remarked that, “India is one of the world’s most dynamic economies, with rapidly growing inbound, outbound and domestic travel sectors that we hope Accor’s development strategy will cater for.”
A number of real estate developers are planning to foray into the hospitality segment to diversify their business and also to leverage on the scarcity of hotel rooms in India. These include names like DLF and Unitech.
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