Gandhinagar Hotels aims to invest Rs 100 crore for residential project

After tying up with ITC's Fortune Hotels for a hospitality project in Gujarat, Gandhinagar Hotels Limited is now planning a real estate development project.

The company plans to invest around Rs 100 crore for residential properties between Ahmedabad and Gandhinagar.

"Apart from hospitality projects, we are also interested in constructing residential properties. We are negotiating land for a real estate project between Ahmedabad and Gandhinagar. While we are investing in all Rs 100 crore for the project, we are raising currently Rs 15 crore through equity and will borrow around Rs 50-60 crore later," said Vinod Joshi, chairman and managing director of Gandhinagar Hotels Limited.

 

Recently, the hospitality player entered into a management tie-up with Fortune Hotels for converting its heritage property into an upscale brownfield hotel.

With the help of Fortune Hotels, Gandhinagar Hotels Ltd. launched Fortune Inn Haveli in Gandhinagar offering 84 rooms including 56 Standard Rooms, 14 Fortune Club Rooms and 14 Suites.

Gandhinagar Hotels Limited is planning to raise Rs 15 crore by issuing equity shares to its existing shareholders at a premium, said Joshi.

Meanwhile, having opened its third hotel property in Gujarat, Fortune Park Hotels, a wholly owned subsidiary of ITC Ltd., is also scouting for potential greenfield and brownfield projects in cities like Vadodara, Rajkot and Gandhidham.

Apart from the recently launched Fortune Inn Haveli in Gandhinagar, Fortune Hotels runs Fortune Landmark in Ahmedabad and Fortune Park in Vapi, in Gujarat.