London-listed hospitality and leisure company India Hospitality Corporation (IHC) will set up a new hotel in Bangalore next year, and is close to raising funds worth Rs 1,000 crore for expansion of its hotel business.

"In the next 12-18 months, we will be focusing on expanding our hotel business in tier II cities. We will be opening a new hotel in Bangalore by July 2010," IHC Managing Director Ravi Deol said.

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"We are building a Rs 1,000 crore property fund which would be utilised in expanding the hotel business in the country. A host of foreign investors have shown interest in the fund and we expect a fund closure in the next 3-4 months," Deol added.

IHC, which currently operates its hotel chain under the brand 'Gordon House', has three hotel properties in the country — two in Bombay and one in Pune.

"We have already invested Rs 800 crore in India across various segments as we seek to expand our presence (in the country)," Deol added.

Regarding the company's acquisition plans, IHC President and COO Sandeep Vyas said: "We are looking at opportunities for both organic and inorganic growth in the country."

"Hospitality sector is poised for a boom and we are hoping to cash in on that," Vyas added.

In 2007, IHC acquired Mars Restaurant, the hotel and restaurant company that manages 'Not Just Jazz', 'By The Bay' and 'Pizzeria' chains. As part of the deal, it also got the control of airline catering business SkyGourmet and Mars Catering Services.

Earlier this week, the firm signed an agreement to manage 10 hotels of realty firm Entertainment World Developers (EWDPL), which would come up by 2011.

Further, as part of the pact, the firm will acquire the franchisee rights for Pizza Hut in central India, from EWDPL. The company is in talks with YUM brands — the owner of Pizza Hut — for the same.

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