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Our Bureau

Bangalore , Aug. 9

Nitesh Estates, the real estate division of the Nitesh Group, on Tuesday announced its foray into the hospitality sector with a proposal to promote a five-star luxury hotel in the heart of the city.

The project, estimated to cost Rs 500 crore, envisages developing a 300-room luxury hotel to be located off Residency Road, a central business district.

Mr Nitesh Shetty, Managing Director, told Business Line that the company is in talks with private equity and hedge funds to execute the project, which is expected to be completed in 24 months.

The company recently received capital investment of $100 million from Siachen Capital, a New York-based private equity firm.

Nitesh Estates is also in talks with some major international hospitality chains and hotel operators for the project, Mr Shetty said.

With India's hospitality industry booming, the average room rate has been increasing at 50 per cent annually in Bangalore; leading international and national brands have already launched their projects in the city.

With the new projects expected to be ready in 2-3 years, the room stock in the city is said to increase to 3,000 from 1,300 currently.

Nitesh Estates recently announced plans for a two million sq ft SEZ in Mangalore. It has also bagged a Rs 100-crore housing deal from ITC.

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

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