Boutique hotels firm Shervani Hospitalities will invest Rs 120 crore on setting up three new properties as part of its plans to open up to seven new hotels across India by 2017.
"We plan to open up to seven hotels by 2017 as we look to expand our presence in new locations," Shervani Hospitalities Managing Director S M Shervani told PTI.
Out of the seven, three hotels will be owned by the company while rest will be under management contract, he added.
"The investments on the three hotels to be owned by the company will be around Rs 120 crore," Shervani said.
When asked about funding of the expansion, he said it would be through a mix of debt and equity.
"However, we will keep the level of debt in check as this industry is very capital intensive and it takes a long time for any property to be profitable," Shervani said.
The new hotels will be in locations such as Goa, Corbett, Indore and Kanpur, among others, he added.
On being asked what he felt would be the main segment of growth for the hospitality industry, Shervani, who is also the President of Federation of Hotel & Restaurant Associations of India (FHRAI), said: "It will be the mid-market and budget segment that would be the main drivers of growth."
At present, Shervani Hospitalities currently runs three hotels in the mid-tier segment.
