Berggruen Hotels plans to pump in around Rs 700 crore for setting up 40
hotels in next five years. Of the total investment, around 40 per cent is to be
from equity while the rest of 60 per cent will be funded through debt.
The company will have 20 owned hotels by 2015-16 with its own investment,
while the rest will be under management agreement. Currently, nine projects are
in the pipeline, consisting two resorts and seven business hotels, in locations
including Kochi and Kovalam in Kerala, Vishakhapatnam in Andhra Pradesh, Pune in
Maharashtra, Goa, Lucknow in Uttar Pradesh, Baroda in Gujarat and Gurgaon in the
NCR.
Meanwhile, on 8 June 2011, Keys Hotel Katti-Ma in Chennai was launched. The
30-room hotel is the project of Katti-Ma Group. It has been set up with an
investment of around Rs 30 crore.