Delhi-based travel services provider Deneb & Pollux today said it is in talks with private equity firms for raising money to part—fund its entry into the hotels segment with a planned investment of Rs 200 crore.

The company, which recently set up a fine dining restaurant — 21 Gun Salute — in Gurgaon as a part of its diversification strategy, will put up two more restaurants in Delhi and Mumbai.

“We have an investment plan of Rs 200 crore to set up hotels. Half of it would be funded by promoters and bank loans and for the remaining, we are currently in talks with Singapore based private equity players,” Deneb & Pollux Co—Founder and Managing Director, Mr Madan Mohan said without divulging names.

He said the firm is likely to finalise deals with two PE firms by the end of this year and would dilute 25 per cent of the promoters’ equity.

For the entry into the hotel segment, the company has already bought two sites in Rajasthan.

“We have bought a 400—year old fort at Jhunjhunu in Rajasthan and another land site near Jaipur to build a new hotel in fort—style,” Mr Mohan said.

He said while the hotel at Jhunjhunu would be managed by the company itself, for the other, it would consider a management contract with a foreign hospitality brand.

“The two properties in the pipeline are likely to be operational by 2015,” he added.

Commenting on the expansion of the restaurant brand, he said: “The total investment planned on three restaurants is Rs 25 crore. The first one has been set up in Gurgaon and the remaining will be in Delhi and Mumbai.”

According to Mr Mohan, Deneb & Pollux last year registered a turnover of Rs 100 crore.

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