The Visakhapatnam-based Varun group is investing more than Rs 200 crore in the hospitality sector, according to Managing Director V. Prabhu Kishore.

He said at a press meet here on Thursday that a 300-room star hotel was currently being constructed in Vijayawada at a cost of Rs 150 crore. "We are also investing Rs 50 crore at Bheemunipatnam, a tourist destination near Vizag. We are building service apartments and a sports village near the Dutch cemetery. We will be the first private group to invest in Bheemunipatnam," he said.

He said the Vijayawada hotel would be completed in two or three years. "The capital is coming up at Amaravati in Guntur district. As the capital region is developed over the next 10 years, we will unveil our plans near Vijayawada," he said.

He said there were plans to build a budget hotel and a convention hall at the IT special economic zone at Rushikonda, "but those plans will have to wait for sometime. We may have to invest Rs 300-400 crore over those projects. But the IT sector has to take off for the plans to fructify."

He said the group's turnover at present amounted to Rs 2,400 crore and it was expecting to grow at 10-12 per cent per annum. "Our performance during 2014-15 was hit by the Hudhud cyclone, but we bounced back strongly after the cyclone, thanks to the commitment of our workforce," he said.

Prabhu Kishore said the AP Government would have to take some steps for promoting tourism and the hospitality sectors. "We expect the banks to give us term loans at the base rate and the State Government to supply power at domestic tariff rates. It will give a great boost to the hospitality sector," he said.

Varun group Director V. Varun also participated in the meet.

sarma.rs@thehindu.co.in

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