Piyush Group to foray in hospitality sector

NEW DELHI: Real estate developer Piyush Group will soon foray into the buoyant hospitality sector in the country and has earmarked Rs 500-600 crore for setting up three hotels, besides planning to tap the capital markets by 2009.

The company has acquired land in Udaipur, Jaipur and Rudrapur to mark its hospitality foray and is in talks with global hospitality chains for management contracts.

"Going forward, we want to tap the growing hospitality market in India and hence would come up with three hotels entailing an investment of Rs 500-600 crore," Piyush Group Chairman and Managing Director Anil Goyal told media.

The company has already acquired 15 acres of land in Rudrapur, 80 acres in Udaipur and 140 acres in Jaipur to construct budget hotels and townships, which will be operationalised within next five years, he added. He said the company is planning to tap the capital market through an initial public offering to raise Rs 400 crore in the near future.

"Piyush Group is in talks with some of the multi-national hospitality companies of Thailand, Singapore and Malaysia for management contracts," Goyal added. The company is also planning to develop special economic zones (SEZ) for IT and ITeS firms in Maharashtra and MP.

"The company is in talks with the state governments and the talks are in advanced stage. The Group will invest about Rs 100 crore in MP and Maharashtra and will acquire 50 acres of land to develop SEZs. SEZs will come up in about next five years," Goyal added.

Piyush Group has projected a turnover of $375 million for the current fiscal as against $225 million in the last financial year, Goel said.