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.

Also Read   Related Stories News Now - Taj, Radisson to open hotels in Amritsar - C'wealth hospitality sector is upbeat - Prajay launches Rs 700cr residential project in Hyd - Prajay to invest Rs 600 crore in hospitality biz - Vishnupriya Hotels ties up with JHM Interstate - Kambala to roll out 50 restaurants in 4 years   Also Read   Related Stories News Now - Markets slip deeper into red - NEWSALERT: Liberhan Commission report tabled in LS - Agni-II fails to meet mission parameters - BSE to roll out websites in regional languages soon - UK credit information major to expand to India More

"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.

The company is also readying a Rs 1,000-crore property fund for expanding its hotel business in the country. The firm has already invested Rs 200 crore in the hotel business through its wholly-owned subsidiary Gordon House Estates.

"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.

Other Stories      - Markets slip deeper into red - NEWSALERT: Liberhan Commission report tabled in LS - Agni-II fails to meet mission parameters - BSE to roll out websites in regional languages soon - UK credit information major to expand to India More

Tags : India Hospitality Corporation | hospitality | expansion   Read Business news in  Advertisements   Get financial advisory and solutions for your projects   Holidays starting at a delightful EMI of Rs 3481   Switch on and say hello to Monday morning !   Your dream home can now be a reality.   Visit Fortis for a preventive health check-up & get a 20% discount.   Follow the ups and downs of your investments. Try our new Portfolio Tracker   Kolkata Dock \ Freight contract for the British Gurkhas Nepal   Find how Midsize Businesses use ERP to gain competitive advantage   Trading in Forex is now as easy as 1-2-3   Discover an economical and cost effective way to market your products and services   Giftwithlove.com: Same day delivery of Flowers and Cakes to India   Download the E-book on the Future of Business Intelligence   Learn Best Practices for improving customer satisfaction   Know your customers better... download the free e-book on CRM