Hotel Hindustan Lines Up Rs 2,500-Crore Projects

The Hotel Hindustan International (HHI) group has chalked out a Rs 2,500-crore expansion plan for the current financial year. The group expects to achieve a turnover of Rs 1,000 crore in two years with the commissioning of two five-star properties in Kathmandu and Goa and a four-star hotel in Mumbai.

Speaking to Business Standard, D K Jaiswal, chairman and managing director of the HHI group said the funds for the three new projects have been tied up in a 20:80 debt-equity mix. About 50 per cent of the debt component is being sourced from foreign markets.

With the commissioning of new hotels, the consolidated room capacity of the group will be 850, Jaiswal added. The Kathmandu property will be a resort-based five-star establishment with a capacity of around 100 rooms.

 

The Goa project will also be a five-star with a room capacity of 200. The resort is planned at Warga Beach which is in south Goa. Goa attracts about 25 lakh tourists every year and the numbers expand by about 50,000 annually. There is scope for 40 per cent more room expansion in Goa at the moment. Jaiswal said.

In Mumbai, however, the group is going in for a four-star establishment through a 50:50 joint venture with Mumbai-based landlords.

The hotel has received a sanction for 225 rooms, the site of which is located near the Mumbai international airport.

HHI is also looking at the possibility of setting up a three-star hotel in Calcutta and is assessing the availability of suitable land in the city. This plan comes in a bid to expand its customer base. Occupancy levels in premier metros have already fallen by 30 per cent.

The group already services the premium segment in Calcutta through its flagship, Hotel Hindustan International. Calcutta is the only Indian city where hotels enjoy 90 per cent occupancy, Jaiswal explained.

An extensive three-year upgradation programme has also been chalked out for HHI, Calcutta. The hotel facilities are expected to be expanded with features like an underground car park and restaurants. The overall effort is to go in for major upmarket changes. Jaiswal said.