Zuri Hotels to invest Rs400 cr for setting up hotels in India and South Africa

Zuri Hotels & Resorts, the Bangalore-based hospitality chain, is embarking on an ambitious expansion plan with optimism returning to the hotel industry.

The company is looking at a mix of greenfield hotels and management contracts to enhance its portfolio in the country.
The company will invest over Rs 400 crore for setting up hotels in India and South Africa. The promoters have started construction of a hotel project which is coming up in the vicinity of the new airport at Devanhalli, Bangalore. The second project is coming up at Nairobi.

“Financing of the new developments will be done through internal accruals and debt in the 30:70 ratio. Debt has been tied up with a consortium of nationalised banks. The two hotels should be ready to receive guests in 20 months from now,” said Aditya Kamani, managing director, Zuri Group Global.

Zuri Hotels has started a new company for hotel management business. The company named Zuri Hospitality Management Services Pvt Ltd has secured a few properties in the last few months.

Kamani told DNA that two management contracts will get signed within a week.  “The new hotels will be managed under ‘The Retreat by Zuri’ brand. These are new-build hotels developed by our realty partners in Sikkim and Kolkata. Between the two hotels we should be adding another 150 rooms to our existing inventory of 1,000 between India and overseas,” Kamani said.

The company management has set a target of 5-6 management contracts for the current fiscal.