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Somasroy Chakraborty

Kolkata, July 31

Following its recent foray in lifestyle retailing, realty major Sobha Developers is now planning hospitality projects in South India.

The company has acquired land in Bangalore, Mysore, Kochi and Thrissur, where it plans to set up luxury hotels with a total of 600 rooms.

“Getting into hospitality is part of our diversification plan. We have acquired land in Bangalore, Mysore, Kochi and Thrissur, where we plan to develop luxury hotels. The hotels are expected to be operational in next three years,” Mr J.C. Sharma, Managing Director, Sobha Developers, told Business Line. Mr Sharma, however, declined to comment on the investment. According to industry analysts, the cost for setting up a luxury deluxe room in India is about Rs 1-1.2 crore. Taking this into consideration, Sobha Developers may invest nearly Rs 600-720 crore in their hospitality projects.

“I cannot comment on the investment now. However, funds are not an issue as we have an excellent debt-equity ratio,” Mr Sharma said.

Unlike most real estate developers in India who have ventured into the hospitality business, Sobha Developers plans to manage these proposed properties on its own. “We do not have any plans for a management contract or a joint venture with any hospitality players. We will manage (these properties) on our own,” Mr Sharma added.

The company recently forayed into lifestyle retailing with manufacture of spring mattresses. The company also has plans to manufacture office and home furniture, and modular kitchen accessories.

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

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