In India, Brigade Hospitality Services Ltd., a division of real estate developer Brigade Group, is expanding its hotel business for an investment of close to Rs 1,000 crore. According to the Financial Express, the company plans to build an estimated 2,000 hotel rooms across 10 hotels in South India and GIFT City in Gujarat over the next two to three years.
The company currently operates two luxury hotel properties in Bengaluru — Grand Mercure and Sheraton with a combined inventory of 356 rooms. Vineet Verma, executive director of BHSL, told the Financial Express that the company is planning to open another eight hotels, four of which are currently under construction. "We have also signed an MoU with IHG Group to develop 10 Holiday Inn hotels in south India,” Verma said.
BHSL expects to invest around R700 crore on developing new hotels in the next three years, although this does not include the cost of land. “The average investment per hotel room will be Rs 35-45 lakh for a mid-scale hotel and Rs 70 lakh to R1 crore for a five-star hotel room, depending on the location,” Verma said.
Brigade is developing its first five-star hotel property in Chennai through a 50:50 joint venture with SRP Tools, a local business. The company also wants to open a 275-room Holiday Inn Express hotel in central Bengaluru, and expects to open a Grand Mercure hotel in Mysore by the end of next month.