API forays into hospitality sector

MUMBAI: Ansal Properties & Infrastructure Ltd is in the process of forming a special purpose vehicle to foray into the hospitality sector, with plans to set up around 30 hotels over next 10 years.

The company will hold about 80 per cent in the proposed SPV and the balance 20 per cent will be held by Ambience Hospitality Management Pvt Ltd.

The SPV will set up hotels in the 5 star and 4 star categories including palace hotels, business hotels, leisure hotels, golf resorts, spas, clubs and serviced apartments.

The SPV proposes to own and manage the palace resorts, golf resorts and clubs under its own brand. It will enter into discussions with leading international hotel chains for possible management and branding tie ups for their business and leisure hotels.

The first initiative will be a palace hotel in Jodhpur and a golf resort in Lucknow, which will operate in the luxury segment.

The company is expected to invest about Rs 2,000 crore in the hospitality business over the next few years.

The share rose 2.12 per cent on the announcement. At 2:26 PM, it was at Rs 268.