Pride Hotel to invest Rs 800 cr, mulls IPO

Mumbai-based Pride Group of Hotels, part of S P group of companies, is planning to invest around Rs 800 crore by 2015. To fund the projects, the company is planning to raise Rs 200 crore through initial public offering (IPO).

The company is planning to set up 30 hotels by 2015 with an investment of Rs 800 crore, said S P Jain, managing director, Pride Hotels after launching company's new property in Chennai.

Around Rs 100 crore of the total investment will be funded by Private Equity partners, including Kotak Real Estate Fund and Primary Real Estate Investments, Mauritius and another Rs 250 crore will be funded from company's internal accruals and balance amount will be funded through debts and loans, he added.

The company is planning to set up 5 star hotels in Goa, Mumbai, New Delhi, Hyderabad and Alibaug, Maharastra. At present, the company operates ‘five star’ luxury hotels in Pune, Nagpur, Ahmedabad, Chennai and Bangalore.

‘Pride Biznotel’, the business hotel, of the group will also expand into Tier II Metros like Noida, Rajkot, Cochin, Gurgaon and Kolkata by 2011.

The hotel chain is also planning to increase its presence in the resorts segment by adding two more in Alibaug and Kerala by 2011.

Under biznotel, the group manages properties in Pune, Ranipet, Puducherry. The group also owns two resorts in Mahabaleshwar and Jaipur.