Viceroy Hotels placement to raise Rs150 crore

Viceroy Hotels, the Hyderabad-based hospitality company, is planning to raise about Rs150 crore through private placement to part finance its Rs1,000 crore expansion.
The company is currently developing two major projects — JW Marriott Hotel in Chennai and Renaissance Hotel in Bangalore.

Both the projects, like its two properties in Hyderabad, would be managed by Marriott.
While the project in Chennai, a seven-star hotel with 387 rooms, is estimated to cost Rs620 crore, the Bangalore project with 300 rooms would cost Rs311 crore.

“Both hotels will be ready by December, 2010. The total investment is expected to
be Rs1,000 crore. We need funds for the completion of these projects,” Prabhakar Reddy, chairman and managing director, Viceroy Hotels, said.

By the end of 2010, the company is expecting its total room capacity of 1,210.

“We are planning to raise about 65% of the expansion cost through debt from banks. The balance would come in from the promoters. We raised about Rs150 crore through private placement last year and we would raise the same amount in the next six months,” Reddy said.