Bengaluru-based Chalet Hotels is reportedly looking to double its room portfolio with total planned expenditure of Rs 3,000 crore over the next four to five years.
The proposed investment is part of a bid to reduce risk by investing in luxury properties in other top-tier cities like Bengaluru, Goa, the National Capital Region and Pune, as well as increasing the company's presence in Mumbai. The proposed expansion plan will be financed through a mix of internal accruals, group resources and debt.
Chalet Hotels, which has a current portfolio of around 2,800 guestrooms, is planning to add between 1,500-2,000 guestrooms through acquisitions and 1,000 rooms through greenfield developments including land cost. It owns total seven properties and co-owns one property in Western and Southern India.
Navi, a planned township of Mumbai, will be a focus market for the company, with two new hotels and 500 guestrooms in the works. Thanks to the new airport and "aggressive infrastructure development in Navi Mumbai," the company is "bullish" on this micro market, the Economic Times claims.
The company will also consider opportunities for acquisitions, or brownfield expansion, based on the attractiveness of the micro market.