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Real estate developer Jain Group plans to complete the listing of its flagship company, Dream Gateway Hotels by April this year.
The ₹40-crore that Jain Group intends to raise from listing on the SME platform of the Bombay Stock Exchange (BSE) will be used to fund the expansion of the Holiday Inn-branded properties in Kolkata.
Holiday Inn is one of the flagship hotel brands of global hospitality major, InterContinental Hotels Group (IHG) and Dream Gateway is the sole developer of these properties here.
Expansion plans
According to Rishi Jain, Executive Director, Jain Group, immediately on cards is the phase-II expansion of the Kolkata property of Holiday Inn.
Set up in February last year, phase-I of the Kolkata property saw 137 keys being made operational at an estimated cost of ₹130 crore.
The hotel has around 85 per cent occupancy and is said to be “breaking even at an operational level” since October last year.
Buoyed by the good response, work on phase-II has been put in place. Around ₹150 crore will be spent over a four-year period. This will see the addition of 100-odd more rooms, two new banquet facilities and new food and beverage options.
“We have signed new contracts with corporates and buoyed by the good response for phase-I, we will now look to get the phase-II in place soon,” Jain told BusinessLine .
The company is also in the process of setting up two more Holiday Inn hotels – one each in Durgapur (100 keys) and Siliguri (105 keys) – at a combined cost of ₹180 crore (approximately).
Construction work for both the projects will begin 2018 onwards.
“Durgapur project may take a little more time than the Siliguri one. Both these projects will be through internal accruals,” he pointed out.
Acquisition
While the Jain Group does not immediately plan to enter other States with commercial or residential offerings, it is definitely eyeing acquisitions and controlling stake in other Kolkata hotels and commercial properties. At least two to three properties are on its radar.
“We are in advance stages of discussion in some cases,” Jain added without divulging details.
This apart, the group has a host of under construction residential properties coming up – in phases – in Kolkata and the suburbs, apart from Durgapur and Siliguri in West Bengal.
Most of these residential units will be ready for delivery over the next three to four years.
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