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| Duet Hotels to invest Rs 2,300 cr |
| Swaraj Baggonkar / Mumbai Nov 08, 2009, 23:54 IST |
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Duet India Hotels, a Delhi-based real estate investment company with interests in the development of hospitality assets in India, will invest $500 million (Rs 2,300 crore) over four years to build 5,000 hotel rooms in the country.
The company, which will invest in both mid-scale and entry 5-star (as opposed to luxury 5-star, another sub-segment) properties, has tied up with New York-based Starwood Hotels & Resorts Worldwide to develop its hotels, to be run under the brand name of Four Points by Sheraton.
Likewise, Duet aims to join hands with other international hotel players to launch their brands in the country. It is thus in talks with a host of hotel chain operators. "Apart from a handful of domestic hotel brands, in India there is a sheer lack of presence of any international brand name within the mid-scale segment," said Dilip Puri, CEO.
"Our focus is to bring international hotel brands to India, while keeping the domestic traveller as our primary target. Looking at the recent meltdown in the industry, we would like to be less dependent on the global travellers," he further added.
Duet India Hotels' investment will be equally spread between equity and debt. To set up the required number of rooms, it will pump in equity of $250 million (Rs 1,200 crore), while the balance of $250 million will be raised through debt. So far, it has made an equity investment of $47 million (Rs 218 crore) and almost an equal investment has been raised through debt of around $53 million (Rs 246 crore).
The company currently has five projects under development, which includes a 115-room hotel in Jaipur, a 223-room one in Pune, a 124-room hotel in Ahmedabad, a 200-room hotel in Indore and a 220-room hotel in Hyderabad.
In addition, the company is in talks with hotel management companies for setting up a 320-room hotel in Bangalore, a 100-room hotel in Nashik and a 110-room hotel in Ludhiana.
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