Brigade Group to Invest Rs 750 Crore to Open up to 8 Hotels by 2020

Brigade Hospitality Services, a part of real estate developer Brigade Group, plans to invest around Rs 750 crore to open up to 8 new hotels by 2020.

The company, which partners international hospitality chains like the InterContinental Hotels Group and Accor, is looking at cities including Bangalore, Mysore and Chennai for the new properties.

"We propose to invest between Rs 650-750 crore in our upcoming six to eight hotels. This cost is exclusive of the land price," Brigade Hospitality Services chief executive and executive director  Vineet Verma told PTI.

Of the new upcoming hotels, two will be opened in the later half of 2015 - Grand Mercure, Mysore in partnership with Accor, and Holiday-Inn Tidel Park, Chennai in partnership with InterContinental Hotels Group (IHG), he added.

When asked about the other cities where the hotels will be located, Mr Verma said, "The remaining projects are still in the planning stage. However, the development would be made in key city locations of Bangalore, Mysore and Chennai."

On being asked about financing for the upcoming projects, Mr Verma said, "We propose to fund our new projects through a combination of internal accruals and debt. We are also open to taking in investment partners and are on the look out."

The realty major had earlier entered into a partnership with global hospitality chain InterContinental Hotels Group to open Holiday Inn Express hotels is also open to other such pacts.

"We have signed an MoU with IHG for setting up 10 Holiday Inn Express hotels. While the focus will be to expedite the setting up of these properties, there are other international brands as well with whom we work. Some of our other hotel projects will be in association with these brands," Mr Verma said.

The business model followed by the group is that while it owns the properties, it enters into management contracts with established hospitality chains, which run the hotels.

Apart from the focus on business class and midscale hotels, the company is also bullish on F&B (food and beverage) sector as well.

"We believe there is tremendous scope in this area that we will want to further explore. We are also getting into institutional catering and cafeteria management services through our subsidiary, Celebrations Catering and Events LLP," Mr Verma said.

Brigade Hospitality Services Ltd (BHSL) has a portfolio that includes serviced residential facilities, clubs, resorts and spas and convention centres, besides hotels.