According to a report by Divya Sathyanarayanan in the Economic Times, Pride Group of Hotels will invest over INR 600 crore over the next 2-3 years to strengthen its portfolio through green field projects and acquisitions, said a top company official. The investments will include a new project in Goa, acquisition of a hotel in Mumbai, and addition of inventory to its existing property in Nagpur.
“When we started off in the 1980s, we grew by greenfield projects and by acquiring existing properties and renovating them to our specs. In the past five years, we went into management model for faster growth and have built a portfolio of 12 operational hotels,” said SP Jain, MD, Pride Group of Hotels. The company has all its hotels under three brands —Pride Plaza (5-star), Pride Hotel and Resort (4-star) and Pride Biznotel (3-star).
Jain said the company has already acquired a land parcel in Goa to build a luxury property with an investment of about INR 225-250 crore. This will be the group’s second property in Goa. The hotel firm is also adding additional inventory of 72 rooms to its existing property in Nagpur for about INR 60 crore. “In Mumbai, we want to have a presence near the airport as the area is getting well connected. Since greenfield projects take a long time, mainly on account of approvals, we are looking to acquire an existing asset in the four or five-star category with an investment of about INR 300 crore,” said Jain.
Over the next three years, the company will also be opening three properties under management contract in Bengaluru, Nashik and Indore. Jain said the investments for expansion will be funded through a mix of debt and equity.
The company also has plans to hit the capital market over the next two years to raise an estimated INR 250 crore through an IPO.”The market is turning positive now and we want our Delhi Aerocity property to stabilise before hitting the market,” he said.