Pride to operate 30 hotels by 2015

As part of its expansion initiative, Pride Group of Hotels aims to open five 'five star' hotels spread over a period of six years. This expansion entails opening of luxury hotel in Goa in 2009 followed by Mumbai, New Delhi, Hyderabad and Alibaug in 2010.

'Pride Biznotel', the full service business hotel from Pride Group will penetrate its reach in Tier II metros with launches scheduled at Noida, Rajkot, Cochin, Gurgaon and Kolkata by 2011.

Pride group currently operates five star luxury hotels at Pune, Nagpur, Ahmedabad, Chennai and Bangalore. Under Pride Biznotel and Pride Resorts brands, the group has set up properties in Pune, Ranipet, Puducherry, Mahabaleshwar and Jaipur.

 

While the 120-room five star hotels was recently launched in Bangalore, the 100-room hotel at Goa with an investment of Rs.55 crore will be operational shortly and 250-room hotel at Mumbai at a cost of Rs 250 crore will be launched in 2010.

The group, which presently has 1000 luxurious rooms at ten hotels in India, has chalked out an ambitious Rs.800 crore growth plan.

Announcing the developments SP Jain, managing director, Pride Hotels Limited says, "During the last five decades only two world class hotel groups have made their presence felt on a pan-India level. By 2015 we will have 30 hotels with 3,000 luxurious rooms in 30 cities to emerge as the third largest hotel chain in the country. Once we emerge as a national hotel chain, we will explore possibilities of extending our reach to other European and Asian countries."

The company plans to raise Rs 200 crore through initial public offering (IPO) in January 2010. "The company will submit the draft offer document to the Securities and Exchange Board of India in a couple of months. Other funds for the expansion plan would be raised from internal accruals, term loans from banks and various financial institutions. Keeping in view the ambitious growth plans of the company Kotak Real Estate Fund has invested Rs 450 million and Primary Real Estate Investments, Mauritius have invested Rs 100 million in the Equity Capital of Pride Hotels Ltd. Jain adds.

The group's Pride Biznotel is moderately priced, upscale, full service, business and leisure hotels to cater to the budget traveller.

"We had occupancy rates close to 70 per cent at all our hotels despite the global economic slowdown," says Satyen Jain, CEO, Pride Hotels Limited. Pride Hotels are promoted by the Rs. 2,500 crore SP group of companies engaged in the businesses of hospitality, construction, financial services and software for the hospitality industry.