Bharat Hotels Sews Up Rs 300 Crore For Spread

The Lalit Suri-promoted Bharat Hotels Ltd has tied up funds worth Rs 300 crore to finance its future expansion plans.

The company has taken loans from ICICI Securities, Punjab National Bank, J&K Bank and the Lord Krishna Bank in this regard.

"We have tied up funds worth Rs 300 crore which we would be utilising to fund the expansion plans of the company," said Lalit Suri, chairman and managing director, Bharat Hotels.

According to Suri, the company was contemplating to pick up some properties even in the heritage segment in Rajasthan. A couple of heritage properties are available, especially in Rajasthan, and can be converted into small hotels.

 

"Though it is not a growth business or even as profitable as hotels or resorts in cities, it is nonetheless a prestigious business," Suri said.

The company has also evinced interest in some of the properties of the India Tourism Development Corporation and Hotel Corporation of India being put on the block by the government.

Suri said the company is interested in picking up one more property in Delhi and is contemplating between Ashok Delhi, Lodhi, Janpath and Centaur properties.

According to Suri, Ashok Delhi was a good property but it would require an initial investment of over Rs 125 crore on account of refurbishing the 550-room hotel, introducing a voluntary retirement scheme for its workers and the upfront payment to the government.

"Even after that we will have the property for only 30 years. On the other hand, it is a simple 'cash and carry' for all the other Delhi properties. We are, therefore, weighing all options at present," Suri said.

Bharat Hotels is also interested in picking up more properties including Laxmi Vilas at Udaipur and Kovalam.

Suri said if the government puts physical infrastructure, airports and transport in place soon, India would be the world's most sought after destination within the next 10 years.

Suri's vision is to expand the portfolio of hotels under the company to around 8-9 hotels within the next few years. After that, he intends to go in for a brand valuation and then offer a part of the equity in the company to a strategic partner in order to expand further.

At present, Bharat Hotels has five properties which include the flagship Grand Intercontinental property at Delhi, Grand Intercontinental at Mumbai and Srinagar, Grand Goa Resorts Intercontinental at Goa and Grand Ashok property at Bangalore.

Suri holds around a 77 per cent equity in the company, while the public hold around six per cent stake. Suri also intends to get the company delisted from the bourses.