Hospitality chain Orchid Group of Hotels is planning to invest over Rs 1,000 crore in the next 18 months to set up seven 5-star accommodations.
NEW DELHI: Hospitality chain Orchid Group of Hotels is planning to invest over Rs 1,000 crore in the next 18 months to set up seven 5-star accommodations across major towns of the country, as it mulls an international foray with properties in China and South Africa.
"The group has essentially been into management contract business with a few completely owned properties. Going forward, we are looking at adding nearly 2,000 completely owned rooms at seven locations across the country," Orchid Group's Chief Executive Officer Pushpinder Kumar told.
He said the company invests in a range of Rs 50 lakh to Rs one crore in setting up each room.
In addition to the seven new completely owned hotels, the company has also entered into management contract for 10 new hotels which would come up in various parts of the country over the next two years.
The company's completely owned hotels would come up in Tier-I cities including Bangalore, Chennai, Jaipur and Kolkata among others.
Kumar said the company would soon foray into the international market and has acquired sites for two hotels in China and another in South Africa.
Orchid Group would launch a new luxury boutique hotel brand - O Hotels - in Pune in the next two months and might extend it to other parts of the country based on the response to the Pune property.
"The 140 room O-Hotel in Pune is being set up purely on experimental basis. Based on the response to this property, we might extend the brand to other metros in the country," Kumar said.
When asked how the company would fund its expansion plans, Kumar said Orchid Group was mulling to tap the capital market and was also in talks with various investors to raise money.
"We want to tap the capital market latest by 2010. Presently, we are in talks with various investors to raise money and jointly develop the planned properties," he said.
The group operates several brands including 5-star brand-Orchid, 4-star brand-Rhodas, heritage hotels-Garh and service apartments.
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