The Hindu Business Line : Emaar MGF proposes Rs 13,000-cr investment in hotels

New Delhi March 21 Real estate player Emaar MGF Land Pvt Ltd is planning to invest around Rs 13,000 crore in the next five years in construction of hotels.

The company is planning to set up 10 hotels in the luxury segment and another 40 in the business class in this period.

"While we will construct the hotels, a speciality partner would run them. We are considering joining hands with one to two partners in each category to manage our hotels," said Mr Shravan Gupta, Executive Vice-Chairman and Managing Director. Out of the 10 hotels in the top category, two could be super luxury 7-star hotels on the lines of the iconic Burj Al Arab hotel in Dubai. "We have the desire of building one such hotel each in Delhi and Mumbai. We are looking at the modalities for the same," Mr Gupta said. The rest of the eight hotels will be five-starred.

Four-star business class hotels will be set up in top cities and capitals of major States including Ahmedabad, Indore, Lucknow, Kochi, Goa, Jaipur and Amritsar. While the major part of the investment will be arranged by the company, a part will also be raised through debt on a project-per-project basis. The company could go by 30:70 debt equity ratio. Part of the Rs 13,000-crore investment will also go towards setting up of serviced apartments. "We are looking at this type of construction in eight major cities in the country," said Mr Gupta. These apartments could be attached to hotels or could also come up as standalone construction.

The investment includes Rs 1,350 crore for the construction of 100 hotels in the budget category announced by the company earlier. The company plans to tap the capital markets to raise funds in the next 12 months. Emaar MGF is a 50:50 joint venture between Emaar Properties of Dubai and India's MGF Group.

More Stories on : New Business | Hotels | Real Estate & Construction

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page