The Hindu Business Line : Mantri Realty plans entry into hospitality

Hyderabad March 14 Mumbai-based Mantri Realty has firmed up plans to diversify into hospitality sector, with an investment of up to Rs 1,000 crore by 2011. It would translate into building three, four, and five-star hotels, with total room strength of 2500.

Announcing the plans, Mr Sunil Mantri, Chairman of the Real Estate Developer, told presspersons that the investment would be a mix of debt and equity. The debt component would be Rs 750 crore and partial equity of Rs 250 crore.

Cash reserves

The company is sitting on cash reserves of Rs 500 crore, which it would leverage into these projects, which were expected to come up in Mumbai, Pune, Solapur, Hyderabad, Bangalore and Kolhapur, Mr Sunil said.

"We have initiated discussions with leading hotel chains like the Hyatt, Millenium of Singapore and Dan Group of Israel to take up the different category hotels. We already have the necessary land, ranging from one acre to 10 acres in these cities," he added.

Mantri Realty wants to operate a model in which it will develop and own the property while bringing in the specialist partner company to manage and operate the hotel. In Goa, it plans to go in for a resort. In all the hotel ventures, the capacity would range between 100-250 rooms. The company is also looking at service apartments.

residential township

In the real estate development, the company has got Liberty Finance of US and Canada investing up to $100 million in large residential township projects in Mumbai, Pune and Bangalore. The total funding for this initiative would be around Rs 1,000 crore, Mr Sunil Mantri said.

Another US company, which he did not disclose, was agreeable to invest $125 million in two projects in Mumbai and Pune. These again would be large township initiatives with 10 million sq ft area each and total investment of about Rs 1,500 crore.

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