Pride Hotels lines up Rs 800-cr expansion
Hospitality chain plans to bring 30 hotels under its portfolio with an inventory of 3,000 rooms by 2015
Pride Group of Hotels, part of the Rs 2,00-crore war chest bolster its expansion plans. The hospitality chain, which has ten hotels under its portfolio, plans to take the count to 30 with an inventory of 3,000 rooms by 2015. of these, 10 hotels will come up in the five-star luxury segment, 15 business hotels under the Biznotel brand and five will sport the Pride Resorts Label.
Aligning with its expansion plans, the hotel major is exploring a diverse mix of funding options term loans from banks, internal accruals and Pes to raise money. It is in talks with PE players to raise a second tranche of Rs 45 crore from Kotak Real Estate Fund and Rs 10 crore from mauritius-based Primary Real Estate Investments in the first round of fund-raising.
Continuing its trail, the company plans to hit the capital market in January 2010. “Pride Hotels Plans to take the IPO route to raise Rs 200 crore. While another 200 crore will be raised from term loans through banks and other financial institutes. The company has generated Rs 250 crore from internal accruals for the same,” said SP Jain, chairman and managing director of the group.
The hotel major has lined up a slew of launches across all three segments it operates in. the company will invest Rs 250 crore to set up and running by 2010. it will soon be launching another luxury property in Goa costing Rs 55 crore.
The chain also looking to set up two business hotels under the Pride Biznotel brand in Aurangabad and New Delhi. The company has entered into management contracts with Orchid, Sarovar Group, Ibis to manage business hotels.
The hospitality major is scouting for properties in Kerala and Alibaug to expand its resort brand – Pride Resorts. It already has two properties in this category in Mahabaleshwar and Jaipur. The company presently has an inventory of 1,000 rooms. The company has 5 five-star luxury properties in Pune, Nagpur, Ahmedabad, Chennai, including the newly-launched 100 room property in Banglore. The sixth one is coming up in Goa. Its portfolio comprises of three business hotels in Ranipet, Pune and Puducherry.
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