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Royal Orchid to invest Rs500 crore on expansion

Royal Orchid to invest Rs500 crore on expansion
PTI
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First Published: Thu, Mar 25 2010. 03 34 PM IST
Updated: Thu, Mar 25 2010. 03 34 PM IST
Ahmedabad: Hotel chain Royal Orchid said on 25 Mrach it plans to invest around Rs500 crore to double the count of hotels in the country by next fiscal.
“We are looking for expansion through the contract manufacturing route. The proposal is to take our hotel count to 20 by next fiscal from the existing 13 facilities across the country,” Royal Orchid chairman and managing director Chender Baljee told newsmen.
“In this series two of our four star hotels Central Royal Orchid will be opened shortly in Navi Mumbai and Shimoga in Karnataka,” Baljee said.
“As per the contract manufacturing route we shall be forging alliance with property owners in India, provide them our brand and will charge them on the basis of turnover and profits,” Baljee said while referring to the business model.
The company had raised funds through an Initial Public Offering(IPO) in 2006 to fund its expansion plans.
“The company proposes to use the IPO proceeds of Rs500 crore to fund its expansion plans, besides debt,” he said.
“One of our five star hotels is proposed to come up in Jaipur by the end of this year, and another 240 room hotel in Hyderabad in next financial year,” Baljee said.
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First Published: Thu, Mar 25 2010. 03 34 PM IST