In line with its business plan of expanding its presence
in major cities, the Hyderabad-based Rs87-crore revenue
Taj GVK Hotels & Resorts Limited has acquired a
hotel property in Chennai.
company bought the property built on 1.5-acre plot for
Rs32 crore from Sri Tripurasundari Hotels Limited pursuant
to share purchase agreement signed on 20, December 12,
to chairman G V Krishna Reddy, after being refurbished
the hotel will start functioning in early 2006. The
additional investment to make the property into a functional
200-room star hotel will be around Rs80 crore.
are yet to decide on the positioning of the hotel."
As another five-star hotel belonging to Taj group, Taj
Connemara, is located across the road, Reddy says the
company will be conducting a market and customer study
before deciding on its positioning.
can be several five star hotels in a city. But each
one has to carve out its own niche," adds Ajoy
K Misra, senior vice president, sales and marketing,
The Indian Hotels Company Limited, a Tata group company.
Indian Hotels has partnered with the GVK group to promote
the Taj GVK Hotels. According to him the proposed hotel
will not cannibalise into Taj Connemara''s market.
it was on the same date four years ago that the two
had signed their joint venture deal.
Chennai property is the second one in recent times to
be acquired by Taj GVK Hotels. Last year, the company
acquired a 152-room five-star hotel in Chandigarh and
the planned investment there is around Rs70 crore. "The
hotel will start functioning early next year,"
than the Chennai and Chandigarh properties, Taj GVK
Hotels runs three five-star hotels in Hyderabad
the Taj Krishna, Taj Residency and Taj Banjara
with a 525- room combined capacity.
to Reddy, the company is looking at Mumbai, Delhi and
Bangalore for setting up hotel operations