Business Daily from THE HINDU group of publications
Monday, Apr 30, 2007
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Business Daily from THE HINDU group of publications Monday, Apr 30, 2007 ePaper |
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Corporate
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New Projects States - Karnataka Royal Orchid plans budget hotel chain Anjana Chandramouly
Expansion mode The company plans to set up a chain of 50 budget hotels under the brand `Pepper Mint' by 2010. For this purpose it has floated a fully-owned subsidiary AB Holdings.
Bangalore April 29 Bangalore-based Royal Orchid Hotels Ltd is on expansion mode. It plans to set up a chain of 50 budget hotels across India under the brand "Pepper Mint" by 2010. For this purpose, the company has floated a fully-owned subsidiary AB Holdings under which the budget hotels will be managed. When contacted, Mr Chender Baljee, Chairman and Managing Director, ROHL, declined to give further details. Of the 50 locations planned, 11 have been tied-up with Indian Railway Catering and Tourism Corporation Ltd. These locations are Chandigarh, Pune, Nagpur, Jodhpur, Bikaner, Tirupati, Bhopal, Agra, New Jalpaiguri (West Bengal), Darjeeling and Jaisalmer. Through this tie-up, it is learnt that ROHL will get these properties on a 30-year lease for development and running of budget hotels.
More projects
Two other properties have been finalised in Hyderabad and Bangalore. Construction work for the same has begun. The company is also in talks with developers and property owners in other major cities for development of these hotels and talks are in advanced stages. According to analysts, who had interacted with the company on its prospects, the project may cost Rs 700 crore. These hotels will have around 90 rooms each. The mode of expansion is expected to be largely based on its current asset-light model of leasing properties instead of owning the same. For developing these hotels, ROHL plans to set up ventures with local developers. The development model would be a mixture of leased, ownership and joint venture, based on suitability and feasibility of model for each project.
More Stories on : New Projects | Hotels | Karnataka
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