Non-hospitality majors check into hotel segment

Written by Neha Pal | Neha Pal | New Delhi | Updated: May 27 2012, 07:29am hrs
With a boom in hospitality market, corporate houses with a non-hospitality background are entering the hotel business. Five such business groupsDS Group, Reliance Industries, Hero Group, Litolier group and Laurent & Benon Management Consultantsplan to invest around R4,000 crore to develop a wide range of hotel projects.

The recent entrants in this market are FMCG company DS group which will pump in R750 crore. Mukesh Ambani led Reliance Industries has bought a 14.80% stake in hospitality firm EIH Ltd (which owns the Oberoi chain) at a whopping R1,021 crores. Another entrant in the business is Ashok Mittal's Litolier group which is better known for its lighting and marble business. It has plans to invest R1,500 crore while Laurent & Benon Management Consultants will invest Rs 60 crore over the next 24 months.

The Litolier Group plans to open four new hotels, one each in Mumbai, Goa, Bangalore and Chennai while Laurent & Benon Management Consultants which is an HR consulting company will launch three-star and four-star hotels and service apartments.

Rajiv Kumar, VC, DS Group said , DS Group has successfully ventured into the rapidly growing hospitality sector with The Manu Maharaniu hotel in Nainital. The group has acquired the Kolkata Airport Hotel Property and is coming up with the first five star hotel in northeast region, at Guwahati, a business hotel at Jaipur and a resort at Jim Corbett. In addition, land has been acquired in other cities with plans to develop more properties.

Litolier Group has entered the hospitality segment with the Royal Plaza (earlier known as Ramada Plaza) in Delhi. Ashok Mittal, chairman, Litolier Group, said, We are going to open four new hotels which includes five-star deluxe hotel at Andheri Kurla road in Mumbai and Goa. He said that they have also procured lands in Chennai and Bangalore.