Daspalla's Hyd hotel to open tomorrow

Daspalla group will open its ' 45-crore business class hotel of the same name here on Sunday and plans to invest another ' 25-30 crore in a new three-star hotel in Kakinada next year, according to its chairman M Raghavendra Rao.

Rao said the new hotel was mainly targeted at the IT industry spread in the western part of the city, and was confident of achieving at least 50 per cent occupancy rate in the first year. “Even if Telangana becomes a separate state, Hyderabad will still have the potential,” he said in reply to a question. The company expects the hotel to breakeven in eight years.

 

The Hyderabad property has come up on a one-acre land leased from the tourism department for 33 years on a two per cent revenue sharing basis. The debt component of the ' 45-crore investment was ' 22 crore with the rest coming from internal accruals, Rao said.