The Hindu Business Line : Image Group to set up two budget hotels

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Hyderabad Jan. 26 The Hyderabad-based Image Group plans to invest at least Rs 100 crore in two budget hotels in the city, as part of its diversification into the hotel and hospitality industry.

The 40-50 room hotels, with star facilities, would come up in Ameerpet and Madhapur. The necessary land for the venture is already owned by the company, hence the competitive costs for the projects, Mr C.V. Rao, Chairman of the Group, said.

The Image Group, which is into real estate, finance and transport, had made its foray into the hospital segment around the year 2000, with its super speciality hospital in the city. It now plans to expand its hospital chain with new ventures in Bangalore, New Delhi and another one in Hyderabad, Mr Rao told Business Line.

Cancer centre

The Rs 10 crore, 100-bed hospital proposed in Kukatpally, will take the Group's number of super speciality facilities in Hyderabad to three. The two other hospitals are located at Ameerpet and Madhapur, with 400 beds.

A new initiative of the Group in Hyderabad is the setting up of an advanced Cancer Centre, with an investment of up to Rs 30 crore. It will come up in the existing Ameerpet Hospital, the Centre would have complete range of cancer treatment facilities and would be completed by the end of 2007.

The Bangalore and New Delhi hospitals, which will have latest equipment, diagnostic facilities, and experienced doctor and nursing care, would see an investment of over Rs 100 crore.

Medical tourism

In Bangalore, Image is at an advanced stage of talks for buying out an existing facility for the 150-bed hospital. In New Delhi, a couple of locations have been explored and would be finalised by the end of the current fiscal, Mr Rao said.

Once, these ventures are in place around 2009, Image Group would like to position itself in the medical tourism segment. "We will have the low cost, high quality treatment facilities, competitive doctors as well as the hospitality facilities to take advantage of the potential. We are also trying to get the necessary accreditations," Mr Rao said.

As for funding, Mr Rao said the comfortable land bank, internal accruals will take care of a good portion of the expenditure. Banks and financial institutions are also willing to extend necessary loans, he added.

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