The Hindu Business Line : Royal Orchid plans Rs 77-cr expansion

CHENNAI: The Bangalore-based Royal Orchid Hotels, which is going in for an initial public offering (IPO), is targeting a nationwide presence with five-star business hotels and four-star hotels in the next three years, said Mr Arjun Baljee, Co-promoter, Royal Orchid Hotels.

The company operates and manages three hotels in Bangalore — Hotel Royal Orchid, Royal Orchid Central and Royal Orchid Harsha — and one in Mysore, the Royal Orchid Metropole.

The company has an inventory of 435 rooms and operates eight food and beverage outlets and 12 banquet halls. It plans to invest Rs 77 crore in its expansion. The plan includes capital expenditure for operating a hotel in Pune on long-term lease; investment in the subsidiary, Royal Orchid Hyderabad Pvt Ltd, which would operate a hotel in Hyderabad on long-term lease; purchase of 51 per cent equity in Maruti Comforts and Inn Pvt Ltd and further investments for renovation of its hotel properties in Bangalore.

The company plans to enter the capital market on January 12 with an IPO of 68. 2 lakh shares of Rs 10 each through the book-building process. The price band has been fixed at Rs 150 to Rs 165 per share of Rs 10 each. The issue closes on January 17.