Mahindra Resorts To Buy Estate In Maldives

Mahindra Holidays & Resorts India Ltd, part of the Rs 6000-crore Mahindra group, plans to acquire a property in Maldives and is looking at Mauritius for a similar deal.

The Mahindra group hotel company has also earmarked about Rs 100 crore for investments in three more properties in India.

Speaking to Business Standard on the expansion plans of Mahindra Holiday & Resorts India, the company's president and chief executive, R Ramanathan, said, "The acquisition deal in Maldives will be formalised in the next two months."

According to Ramanathan, they are also looking at expanding their network of properties in India from two. "We have shortlisted three sites in India, including Coorg, Kumaon and a site near Mumbai for a beach resort."

 

At present the company, which operates under properties under the Club Mahindra Holidays brand, has properties in Munnar and Goa. The total investments in these two properties are to the tune of Rs 38 crore and Rs 65 crore, respectively.

Ramanathan said over the next 14-18 months the company will be investing about Rs. 100 crore in the new properties.

The company has also taken up two properties under lease and licence arrangements, Mussoorie (The Fort resort) and Mashobra in Himachal Pradesh (Hotel Gables).

"When the Mahindra group got into the services industry few years back, we made sure that we have a definite purpose. So, our endeavour is to make holidays enjoyable and the company works on a `comeback value' based on experiences."

The company is also looking at two options of going in for an initial public offering or go in for a private placement. "But these things will only take shape once our immediate expansion plans are in place," Ramanathan said.

The company offers three products for customers to choose from and they are corporate product/vacations option, hotel rooms and membership programme.

Club Mahindra members get a free three-year membership with RCI which entitles the member to one bonus week and two welcome weeks. Further the membership is not confined at any place of his choice within the Mahindra Resort/associate network.

Club Mahindra has over 7,000 members as of date. In 1998-99 over 50 per cent of the members vacationed at the resorts. The membership is expected to reach 8,500 by March 2000.