The Hindu Business Line : Ansal Properties makes Rs 2,000-cr hospitality foray

New Delhi, June 30 Real estate company Ansal Properties & Infrastructure Ltd (Ansal API) has announced its foray into the hospitality sector through a Special Purpose Vehicle (SPV) with Vipin Luthra-owned Ambience Hospitality Management, and unveiled plans to invest Rs 2,000 crore to set up 30 hotels in the next 10 years.

Ansal API will hold 80 per cent equity in the proposed SPV and the balance would be held by Ambience Hospitality Management Pvt Ltd. “Our foray into the hospitality industry was long awaited. This is a natural extension for us as we have already established hotels in India and overseas as well as clubs in our townships. With a strong realty experience in India and overseas markets, we feel confident of launching our own chain of hotels throughout India,” Mr Sushil Ansal, Chairman, Ansal API, said.

The proposed SPV would set up hotels in the 5-star and 4-star categories including palace hotels, golf resorts, business hotels, leisure hotels, spas, clubs and serviced apartments.

Initial projects

Among the first hotels in the block would be a palace hotel in Jodhpur and a golf resort in Lucknow, both operating in the luxury segment. “In fact, we intend to have 3-4 hotels up and running in Noida, Greater Noida and Ghaziabad before the Commonwealth Games,” Mr Kunal Banerji, President, Marketing and Corporate Communication, Ansal API, said.

He said that the company would also look at tapping into hospitality funds for future expansion. “While the Rs 2,000-crore investment by the SPV will be met from internal accruals and debt, for further expansion for chains abroad, we could look at leveraging such funds,” he said.

Growth momentum

The hotel industry in India has sustained its growth momentum and a slew of real estate companies have charted out plans to foray into the sector. Last year, Hilton Hotels Corporation announced that it would create a joint venture company with DLF to develop and own 75 hotels and service apartments over the next seven years.

Unitech has entered into an alliance with the international hotel chain Marriott to set up hotels. These hotels will be owned by Unitech and managed by Marriott.

More Stories on : Diversification | Real Estate & Construction | Hotels

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