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Golkonda Hospitality to raise Rs 100 cr

Itishree Samal  |  Chennai/ Hyderabad 

Hyderabad-based Golkonda Hospitality Services and Resorts Limited is planning to raise Rs 100 crore during the fourth quarter of this financial year.

The company, which operates hotels and resorts under the ‘Golkonda’ brand, has plans to set up a hotel in Mysore in Karnataka and a three-star 100-room hotel in Kakinada in Andhra Pradesh. These will involve a total investment of Rs 150 crore.

“Of the total investment, around Rs 50 crore will be equity and the rest will be debt. Once we acquire the land by December this year, we will be raising Rs 100 crore debt and then start construction work,” Suresh Reddy, managing director of Golkonda Hospitality, said.

Golkonda is in talks with financial institutions and banks for the debt money. Initially, the investment would be in the form of debt and subsequently, the dilution of equity would happen, he added.

Inaugurating ‘Angsana Spa’, a sister concern of Thailand-based Banyan Tree Spa, at the Golkonda resort near Gandipet lake in the city on Friday, Reddy said, “The company is also planning to expand the resort by adding more villas, a convention centre and a 100-ft tall tower restaurant in December this year.”

The convention centre, spread across 40,000 sft, will come up with an investment of Rs 4.5 crore. It will have a capacity to house 1,500-2,000 people. For the expansion at the resort, Golkonda has lined up Rs 10 crore, he added.

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First Published: Mon, August 27 2012. 00:03 IST