EIH to pump Rs650 crore in two own hotel ventures

EIH to pump Rs650 crore in two own hotel ventures
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First Published: Thu, Aug 14 2008. 04 31 PM IST
Updated: Thu, Aug 14 2008. 04 31 PM IST
PTI
Kolkata: East India Hotels, the flagship company of Oberoi group, today said it would invest around Rs650 crore in its two properties in Bangalore and Goa.
Based on an investment of Rs1.4 crore for each room, the total project cost for both the properties would be around Rs 650 crore, EIH chairman and chief executive P R S Oberoi told reporters after the AGM.
Bangalore will be a 400-room property on an eight-acre plot while Goa will have both hotel and villas on a 50-acre plot.
“Work in both the projects would begin as soon as they get final requisite clearances,” Oberoi said.
Speaking on the financing of the projects, Oberoi said it would have a mix of debt-equity ratio of about 2:1 and as “we are a cash rich company, financing would not be a problem”.
He, however, did not say by when these properties would be operational.
In line with the strategy to expand its operation by management contracts, the company will be managing seven new upcoming hotels in both domestic and international locations.
“Our focus stays in managing hotels rather owning them,” Oberoi said.
EIH has also entered into joint ventures for a second hotel in Bangalore and another in Hyderabad.
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First Published: Thu, Aug 14 2008. 04 31 PM IST