Suffering from low margins, Indian developers are entering fresh businesses like retail and hotel to expand revenue stream and offset slowing demand for real estate projects due to six year high lending rates and severe financing norm. Below are a few recent investments in the hospitality sector
Yatra Capital, a Jersey-based private equity firm, will invest more than four million euros in an forthcoming Taj hotel in Calcutta. Yatra Capital will acquire a 40 % stake in Jalan Intercontinental Hotels Private Limited, the company which is building the two hundred room property. The hotel will be managed by Indian Hotels Limited under the Taj Gateway brand.
Warburg Pincus-Casino Group: The Kochi-based Casino Group of Hotels (CGH) is in the market to raise capital. According to the media report, private equity fund Warburg Pincus is in talks with the company to invest upto three hundred twenty five crore rupees. CGH is a foremost hospitality group in Kerala, and is wholly owned by the the Dominic family. The report adds that they may divest upto 20 %, which would value the enterprise at around one thousand six hundred crore rupees. The company requires funds for its domestic as well as abroad expansion.
Rakindo Developers has raised four thousand crore rupees from Lotus Investment fund to develop hotel properties across India under the brand name Millennium and Copthorne Hotels. It has initiated construction in Hyderabad and Bangalore, and plans to set up hotels in Vizag, Kochi and other south Indian cities.
Delhi’s DLF and Parsvnath have also planned 75 and 100 hotels, respectively. DLF is teaming up with Hilton Hotels and Parsvanth with Royal Orchid Hotel.
Sahil Group, Pune-based property developer has coupled up Carlson Hotels Worldwide-Asia Pacific for a project under the Radisson Resort and Spa brand at Alibaug and Pune
Nirmal Lifestyle has formed a JV with Accor Hotel for development in Mumbai and Goa.