For this, two hotels would be set up at Coimbatore and Bengaluru with an estimated investment of Rs 160 crore, said Raymond Bickson, MD and CEO, Indian Hotels Company.
Addressing a press conference on Tuesday to announce Oriental Hotels Q1 results here, he said: We have extensive plans to expand Orientals footprint across the southtern region over the five-six years. The company has land banks in places like Mysore, Sriperumbudur (near Chennai), Gundu Island (Kochi), Coonoor and Bengaluru.
We have invested around Rs 178 crore so far on upgrade and renovation of existing hotels in this region and will be investing Rs 160 crore over the next two years to increase the room capacity from 850 to 1,250 by 2012. With the land banks in place, the company will announce fresh plans, " he said.
Anil P Goel, ED (Finance), said compared with last year, the average occupancy ratio has gone up substantially from 55% to 70%. He added most of the growth will happen from within the country.
Announcing the first quarter results, N Prakash, director, operations, Oriental Hotels, said the company reported a healthy net profit of Rs 1.68 crore for the quarter ended June 30, 2010 compared with Rs 59 lakh in the coresponding period last fiscal.