The Pride Group of Hotels will invest more than INR6 billion (US$90 million) over the coming years to expand its portfolio in India.
According to the Economic Times, the investments include a new project in Goa, the acquisition of a hotel in Mumbai, and the expansion of its existing property in Nagpur. The company will also be opening three properties under management contracts in Bengaluru, Nashik and Indore.
“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, managing director at the Pride Group of Hotels.
Jain said the company has already acquired a land parcel in Goa to build a luxury property with an investment of approximately INR2.25-2.50bn, and it is also planning to spend INR600m adding 72 more rooms to its property in Nagpur.
“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 INR3 billion,” said Jain.
Jain said the investments for expansion will be funded through debt and equity. The company also has plans to raise an estimated INR2.5bn through an IPO.