New Delhi: Sant Singh Chatwal, a Sikh Indian-American businessman, will invest Rs4,500 crore by 2009 for setting up a chain of hotels, including a seven-star one, in India.
“We want to create convention centres with a capacity for 2,000-3,000 people in every hotel,” Chatwal, president and CEO of Hampshire Hotels and Resorts (HHR) said.
“We are doing the master planning for phase-I, which includes high-end seven-star hotels in major cities like Delhi, Noida, Mumbai and Bangalore and dream hotels in Kochi, Hyderabad and Chennai,” he said.
“India is a virgin country in the hospitality sector... I would like to explore the potential here,” said Chatwal.
The hotelier said he has already acquired land in Bangalore, Noida, Kochi and Hyderabad, while negotiations are on in Mumbai and Chennai.
HHR owns hotels in the US, UK and Thailand. Along with this, the $1.5 billion group has set up Bombay Palace locations around the world including Montreal, Toronto, New York, Washington, Houston, Budapest and Kuala Lumpur.
On the funding plans of the project, Chatwal said while 35% would be through equity, 65% would be debt. “Equity would be funded by internal accruals. In fact, land has been purchased through equity capital only.
“We are in discussions with financial institutions and banks for the loan and that should not be a problem at all. As and when funds are required, debts would be raised,” he said, adding all hotels in phase-I would be completed and operational in 2009 before the Commonwealth games.