| Sarovar Hotels and Resorts, the multi-brand hotel management company, is in talks with strategic investors to raise about Rs 75-100 crore to fund its expansion plans.
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| The company hopes to conclude a private placement of about 10 per cent of stake in three to six months.
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| Sarovar Hotels is India’s largest chain of hotels operating in the mid-market segment.
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| It operates 36 properties in India including, Hometel, and three, four and five-star hotels under the Sarovar brand, and is also the master franchiser for Carlson Hospitality Worldwide’s Park Plaza and Park Inn brands.
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| It has around 33 properties under various stages of development, which will all come up in about three years.
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| “We are planning an investment of Rs 350-400 crore in the next few years to expand our chain of budget hotels and we need funds for this,” said Anil Madhok, managing directors, Sarovar Hotels.
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| The company is also planning an initial public offer in two-three years.
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| Its current turnover is Rs 1,400 crore.
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| In 2006, Sarovar Hotels and Resorts placed 28 per cent stake with two private equity investors, Bessemer Venture Partners Trust, an affiliate of US-based Bessemer Venture Partners, and to New Vernon Private Equity for Rs 38 crore.
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| “The deal in 2006 was at a low value. But this time we are expecting a good deal because the market is booming and the company has grown,” Madhok said.
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| The company also plans to acquire a 250 room five-star hotel in a metro. “We have identified a property in a metro and the due diligence is on. We hope to close the deal in next couple of months,” Madhok said.
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| On Friday, Sarovar Hotels launched a boutique five-star hotel in Goregaon, suburban Mumbai, called the Grand Sarovar Premiere, which it has taken under management contract from Mumbai’s prominent real estate group the Balwa Group Enterprise.
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| Sarovar Hotels will also undertake the management of Balwa group’s other three hotels coming up in Mumbai.
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| The Grand Sarovar Premiere is Sarovar Hotels’ third property in Mumbai, after Hotel Marine Plaza and Park Plaza Royal Palms. |
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