Phoenix Mills Ltd – pioneers in large multi-use developments – is infusing fresh capital of Rs 350 crore into Ruias-owned Atlas Hospitality for future hospitality projects. ?The aim is to develop 8 to 10 budget hotels, 5 premier luxury resort hotels and four to five star business hotels in India.? Shishir Shrivastava, CEO ? hospitality and new initiatives, Market City Resources (a fully owned subsidiary of Phoenix Mills Ltd) told FE.
Mahesh Iyer, chief financial officer, Phoenix Mills Ltd said, ?Over the next four to six months, we are looking at a private equity transaction in Atlas Hospitality by divesting 10% to 15% to fetch Rs 500 crore. This would mean raising a total of Rs 850 crore for Atlas and 1:1 debt, resulting in infusing a total of Rs 2,000 crore. The aim is to be an operator of hotels rather than just a hotel asset owning company.? Atlas Hospitality currently has five hotel companies participating into funding equities. On Atlas? new hotel development plans, Shrivastava explained, ?The first vertical will include setting up business hotels in Hyderabad and Jaipur. Atlas Hospitality would look at setting up premier luxury resort hotels in Agra, Udaipur, Banaras in the second vertical, mainly targeted at tourist destinations. Finally, the third vertical would include developing three and four star budget hotels in Tier II cities such as Ludhiana, Indore and Raipur among others.?
Atlas Hospitality currently holds the hotel business in the ?Market Cities? ? a new retail model developed by Phoenix Mills Ltd – across the country. Phoenix Mills expects Atlas Hospitality to attain a market cap of $3 bn in the next three to five years, summed up Iyer.