RNA Corp mulls Rs2,000 cr investment in hospitality sector

RNA Corp mulls Rs2,000 cr investment in hospitality sector
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First Published: Sun, Oct 12 2008. 02 14 PM IST
Updated: Sun, Oct 12 2008. 02 14 PM IST
PTI
Mumbai: Realty player RNA Corp is planning to foray into the hospitality sector by setting up three hotels with 800-rooms capacity with an investment of Rs800 crore, a company official said here.
The company has earmarked an investment of around Rs2,000-crore in the next five years for the sector, RNA Corp Vice President Corporate Planning Manoj John said.
“Our foray into the hospitality sector is aimed at diversification in the real estate segment. We will be investing Rs400 crore for two hotels in suburban Andheri and Chembur and another Rs400 crore for a luxury hotel in central Worli,” John said.
The projects would be ready in the next two years, John said adding that funds would be sourced from internal accruals as well as from various private equity players.
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, while the 200 room mixed-use hotel in Chembur will target domestic travellers.
The company is also planning to foray into lifestyle resorts targeted at the premium leisure segment at various locations across the country. It is considering the option of engaging ‘hotel chain operators´ to manage properties on the ‘management contract´ model.
“There is an evident demand-supply gap that we foresee and there’s a tremendous opportunity for business and budget hotels in micro-markets,” John said.
RNA Corp is engaged in development of 15 million sq ft of real estate. This includes a township in Chembur, residential towers in Bandra and 1,000 apartments in residential towers at suburban Kandivali and Sewri.
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First Published: Sun, Oct 12 2008. 02 14 PM IST