Real estate news on Pride group to invest Rs 1,000 cr in new properties

Builders/ Developers, Hotels and resorts, New projects, Delhi NCR, Goa, Mumbai, Coimbatore, Chandigarh
Posted on Feb 29, 2012
Mumbai-based Pride Group of Hotels plans to set up new properties at an investment of Rs 1,000 crore over the next few years. The hospitality group currently owns a chain of upscale mid-market and business hotels.

Promoted by the Rs 3, 000 crore SP Group of companies, the company is planning to open new properties in Mumbai, Delhi, Goa, Alibaug, Mysore, Indore, Chandigarh, Munnar and Coimbatore and focus on expanding its base in other tier-II and tier-III cities.

The Group that has two hotel brands – Pride Biznotel and Pride Resorts – aims to have a bouquet of owned and managed properties by 2015-16.

“We recently opened the 12th property in Kolkata at the cost of Rs 100 crore,” said Mr S.P. Jain, Pride Hotels' Managing Director. The group's first property in Eastern India has 153 rooms and will be fully operational from March 2012. Funding

Pride Hotels had the regulatory approvals in place for an initial public offering (IPO), which got lapsed a few months ago. The company that decided to withdraw the IPO fund raising plan due to frail market sentiments is now looking at its own internal resources to fund the expansion in addition to debt. “About 50-55 per cent of the funding will be done via internal accruals,” Mr Jain said.

While the global economic crisis has left an impact in the hospitality industry in India, Mr Jain said that the guest sentiment hasn't been impacted too much despite the uncertainty in the economy.

The upscale mid-market segment has not been impacted due to the slowdown. Its mainly the luxury properties that take a hit, he added.

The company recorded a growth of 8-10 per cent last financial year and has maintained an average occupancy rate of 68 per cent this year so far, he said. “The room rates may go up marginally next year. We are adding 550 more rooms to the tally,” said Mr Jain.

Source: .ece

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