East India Hotels Ltd plans hotels in Bangaluru and Goa

16 August 2008

Owner of the Oberoi brand, luxury hotels group East India Hotels Ltd says it will invest Rs650 crore to strengthen its presence in Bangaluru and Goa by adding new hotel as part of its growth plans to add another 10 properties and 2,300 rooms. 

The group also plans to integrate the recently established Trident brand under its EIH Associated Hotels.

EIL plans to open 10 hotels in the next three years, of which seven new hotels would be managed by the company and three on a management-contract basis. The company shall add 2,300 rooms in India and abroad by 2011 EIH chairman PRS Oberoi told shareholders at the company's AGM in Kolkata on 14 August.

He said that the company was awaiting government approval, which it hoped to have by October.

EIH will invest around Rs500 crore to build a 225-room luxury hotel in Bangalore spread over eight acres. The rest would be invested on a 75-room property spread over 50 acres at Goa, which would have a hotel and villas. Of these around 15 villas will be built for sale. These hotels will be on properties owned by the company.

These hotels will be funded through a mix of debt and equity in the ratio of 2:1. The promoters are also considering raising their holding from 46.34 per cent.