Plans to invest about $200 million initially
The UK-based Dawnay, Day Group today announced plans to enter the hospitality sector in India by launching a chain of hotels in the metros and mini metros.
The company intends to have 30 three and four-star business hotels in India over the next 3-5 years. Dawnay, Day would initially invest about $200 million in the business, Mr Peter Klimt, Chief Executive, Dawnay, Day International said at a press conference here. Dawnay, Day Group would fund the business through debt and equity.
The hotels would target corporate executives and foreign tourists. Each hotel would have 100-125 rooms of around 30 sq m. The average price of the rooms would be about $100, Mr Mandeep Lamba, Managing Director, Dawnay, Day Hotels-India said.
"We believe there is tremendous potential for growth in the business segment of the hospitality industry and we expect to mark a substantial presence in the market by offering the business traveller a superior product," Mr Alok Vajpeyi, Vice-Chairman and Managing Director, Dawnay Day AV Financial Services, Private Ltd, said.
The company is currently in discussions for acquiring properties in Pune, Mumbai, Chennai, Hyderabad and New Delhi. It expects to set up the first hotel in the next six months and have 10 hotels by 2010. The company intends to acquire land at key locations in metro and mini metro cities, Mr Klimt said.
According to Mr Lamba, Dawnay, Day is open to acquisitions to expand its brand profile.