1. Brigade Hospitality plans Rs 1,000-cr expansion

Brigade Hospitality plans Rs 1,000-cr expansion

To include hotel in Gujarat’s GIFT City, Signature Club Resort near Bengaluru

By: | Bangalore | Updated: December 23, 2015 12:14 AM

Brigade Hospitality Services Ltd (BHSL), a division of real estate developer Brigade Group, is embarking on a major expansion of its hotel business involving an investment of close to Rs 1,000 crore. The company plans to build close to 2,000 hotel rooms across 10 hotel properties in South India and GIFT City in Gujarat over the next two to three years.

The company currently operates two luxury hotel properties in Bengaluru — Grand Mercure and Sheraton with a combined inventory of 356 rooms. “We have planned to open another eight hotels which are in different stages of development. Of this, four are under construction. We have also signed an MoU with IHG Group to develop 10 Holiday Inn hotels in south India,” Vineet Verma, executive director, BHSL, told FE.

BHSL would invest around R700 crore on setting up new hotels in the next three years. The investment, however, excludes the cost of land. The company would fund the expansion out of its internal accruals and bank debt in the ratio of 65:35. “The average investment per hotel room will be Rs 35-45 lakh for a mid-scale hotel and Rs 70 lakh to R1 crore for a five-star hotel room, depending on the location,” Verma said.

Brigade is setting up hotel in Chennai through a joint venture with a local company, SRP Tools. It has set up a 50:50 joint venture to set up its first five-star hotel property in Chennai.

He said Brigade would also develop a new budget hotel under brand Holiday Inn Express & Suites in the central parts of Bengaluru. This will have 275 rooms. “We are focusing on the budget traveller who comes to the city for conferences and meetings,” Verma said.

Brigade is also planning to open a Grand Mercure brand hotel in Mysore by January 2016 with 150 rooms. Here, the company is focusing on heritage tourism and tap customers coming to the city for heritage tourism. The hotel will have a rooftop deck for customers to view the famous Mysore Dasara procession.

Apart from these two, the company is also introducing the Holiday Inn, a five-star luxury hotel in Chennai with 202 rooms. This hotel will open in early 2017. It will have another hotel under Four Points by Sheraton at Kochi’s Info park with 212 rooms by September 2017. This will be a five star property.

Brigade is also making its foray outside South India with a property at GIFT City near Ahmedabad. However, the company is yet to finalise which brand of hotel to be set up there. It will be a three-star or four-start with about 150 rooms, Verma said.

He said the company is also planning to develop another Holiday Inn Express & Suites at Brigade Golden Triangle project towards Hoskote on the outskirts of Bengaluru. This will be part of its upcoming mixed use development project involving a mall, residential, commercial and retail spaces on Old Madras Road.

Brigade is also planning to develop one more Holiday Inn hotel with 200 rooms near Bengaluru International Airport and a second property under Grand Mercure brand in Mysore.

Brigade Hospitality contributes 10-15% of the group’s total revenues. It is expecting a revenue of R170 crore in FY16.

Spreading wings
* Brigade Hospitality Services Ltd (BHSL), a division of real estate developer Brigade Group, is embarking on a major expansion of its hotel business involving an investment of close to R1,000 crore. The company plans to build close to 2,000 hotel rooms across 10 hotel properties in South India and GIFT City in Gujarat over the next two to three years
* The company currently operates two luxury hotel properties in Bengaluru — Grand Mercure and Sheraton with a combined inventory of 356 rooms
* BHSL would invest around R700 crore on setting up new hotels in the next three years

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