The Hindu Business Line : Empee plans Hilton launch in mid-2009

Chennai, Sept. 21 The Empee Group is planning to launch its Rs 430-crore five-star hotel ‘The Hilton’, in Chennai by mid-2009. The first phase of the property, which is under construction, will have 253 rooms, and is likely to be completed by June next year. The company proposes to add another 100 rooms in the second phase.

The company is now planning two more hotels — in Sriperumbudur (near Chennai) and Bangalore. Besides, it also proposes to renovate and upgrade its existing two three-star properties in Chennai — Grand Orient and New Victoria. All this will involve an investment of Rs 300 crore. While the 63-room Grand Orient will be upgraded to four-star with 40 more rooms, the 50-room New Victoria will be refurbished.

According to Ms Nisha Purushothaman, Joint Managing Director of the group, the intention is to build a 100-room three-star hotel at an investment of Rs 40 crore in Sriperumbudur, where the company has eight acres of land, and a 200-room high-end hotel in Bangalore, where it has acquired five acres. The proposed investment for this project is Rs 200 crore.

The Rs 1,000-crore group will fund the project with 30:70 debt-equity. Asked whether the company will raise money through private placements, Ms Purushothaman said, “We are weighing various options, including external commercial borrowings, as the interest rates here have gone up.”

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