U G Hotels Plans Luxury Resorts In Delhi, Nanital

Delhi-based U G Hotels and Resorts Ltd plans to open three star and four-star hotels in Delhi, Mussoorie and Nanital. The company, which owns and operates Shilon Resort, a five-star resort 24 km from Shimla, plans to commission the proposed hotels within the next four years.

Group president Prem Dham said the detailed project reports have not yet been finalised. Funds for the proposed projects would be raised through internal accruals and loans for financial institutions, he added.

U G Hotels is also in talks for acquiring majority stake in an existing four-star hotel in Goa. The investment in this project would be about Rs 12 crore. Shilon Resort is the first and only five-star resort project in Himachal Pradesh.

 

The proposed hotel in South Delhi will be targeted at the upper-middle class and will have at least 100 rooms.

Those in Mussorie and Nanital will have around 50 rooms each.

The group is negotiating with an established international chain for a tie up and also plans a joint venture with a Mexican food chain for opening restaurants in the country.

U G Hotels posted a turnover of Rs 2 crore in 1996-97 and expects it to double this year. The group has also procured land in Jaipur, Dharamshala and Siliguri where it plans to extend hospitality service either on its own or in collaboration.

Dham said he is introducing the `Club Concept' for corporate membership and the `Indian Hoteliers Pool', whereby property owners would be able to jointly market and sell each other's locations.

According to Dham, the current occupancy rate at the resort is 42-45 per cent and the group aims to raise it to 55 per cent. The Shilon Resort, which has 50 cottages, also has the highest cricket ground in the world.