LuLu Group unit to invest Rs1,000 crore in India
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LuLu Group International, a $5.4 billion conglomerate based in Abu Dhabi, plans to invest about Rs 1,000 crore in the hospitality sector in India over the next five years.
Twenty14 Holdings, the hospitality investment arm of LuLu Group International, has assets worth more than $650 million spread across the UK, the Gulf region and India.
The company bought its first property in India in December 2015 near the Cochin International Airport in Kerala, marking its entry into the mid-scale hotel segment. It acquired its second property in Bengaluru in 2016, which will be branded as Courtyard by Marriott.
“For the next five years, we have set up a Rs1,000 crore fund to acquire properties across India,” said Abeed Ahamed, managing director, Twenty14 Holdings.
The company’s strategy for India is to look at properties that vary between 100 and 150 rooms, with a combined investment of close to around Rs100 crore per property.
As part of that strategy, Twenty14 Holdings plans to invest Rs 100 crore in the Bengaluru property from its fund and will acquire nine more properties through the fund in the next five years, Ahamed said.
“Presently, the market is stressed. But if you were sensible enough to get the right mix of land cost versus other costs, you can pretty much sit at a good level. We don’t see a large upside to it in the short run, but in the long run, we will always see benefits,” he added.
Lulu Financial Group, the financial services arm of Lulu Group, closed around $4.5 billion remittance transfers last year, with 50% of that flown into Indian market. The company is expecting single-digit growth this year.