Real estate firm RNA Corp is planning to enter the hospitality business in metros. To start with, the company has identified properties to develop a business hotel at Andheri (East) and a mixed-use budget hotel at Chembur in Mumbai. It is also all set to develop a luxury hotel in Worli, Mumbai said Manoj John, vice president, corporate planning, RNA Corp.
Speaking to FE, John said, ?The foray into the hospitality sector is aimed at diversification in the real estate segment. Our long term investment plans in acquiring and developing hotels will be Rs 1,500 crore to Rs 2,000 crore in the next five years.?
Investment outlay for developing business and budget hotels will be Rs 400 crore, he added. Also, an additional Rs 400 crore will be pumped in to develop the luxury hotel in Worli.
?The projects will be ready in the next two years,? said John, adding that funds will be sourced from internal accruals as wellas various private equity players. While the proposed 100-150 room business hotel at Andheri will have the twin advantage of being located near the Andheri-Powai business district and the airport, the 200 room mixed-use hotel in Chembur will target domestic travelers. It will meet transit accommodation which is driven by community gatherings and social events. The proposed luxury hotel development will address demand from international business and high-end domestic customers.
Apart from the ones mentioned, RNA Corp also plans to foray into lifestyle resorts targeted at the premium leisure segment at various locations across India. The company is considering the option of engaging ?hotel chain operators? to manage properties on a ?management contract? model.
?There is an evident demand-supply gap that we foresee, and there?s tremendous opportunity for business and budget hotels in micro-markets,? opined John.
RNA Corp is engaged in development of 15 million sq ft of real estate. This includes a township in Chembur, residential towers in Bandra, 1000 apartments in residential towers in Kandivali and Sewri.