Published On:December 3 2007
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Dawnay Day Hotels plans Rs 4,800 cr investment
New Delhi: UK-based company scouts for Indian partners, PE investors to set up four-star hotels in metropolitan centres.
UK-based Dawnay Day Hotels, which plans to invest $1.2 billion (about Rs 4,800 crore) in India to set up four-star hotels, is scouting for Indian partners and private equity investors to expand its footprint.
The company operates here through a wholly-owned unit, Dawnay Day Hotels India Ltd, and plans to initially invest $200 million (about Rs 800 crore) to set up 10 properties in metropolitan towns by 2010, in the first phase.
The first phase of expansion will be funded by the parent company, while Dawnay Day India will raise the remaining $1 billion locally, for investments to be made till 2016.
“Our initial investment of $200 million would come from the UK-based parent but we plan to raise the remaining $1 billion of planned investment locally. We are looking at all options including PE investments, local partners and even an IPO beyond 2010,” Dawnay Day Hotels India Managing Director Mandeep Lamba said.
He said a part of the investments beyond 2010 would also be met through internal accruals.
Dawnay Day India has acquired land in Pune, Ahmedabad, Jaipur, Lucknow, Bangalore and Hyderabad and is looking forward to signing deals for Chennai, Bhubaneswar, Chandigarh, Coimbatore, Mumbai and Kolkata.
The company’s first property is expected to come up in Jaipur by the third quarter of the next calendar year. It would also set up service apartments in Pune and Hyderabad.
Dawnay Day’s Pune project will have 73 service apartments while its Hyderabad property would 100 such apartments.
The company is looking to set up 10 properties of 125-150 rooms each by 2010-end and would invest nearly Rs 1 lakh-Rs 1.5 lakh per room.
Dawnay Day, which runs four-star brand Paramount in the UK, is yet to launch an India-specific brand. The group operates some 20 properties in the UK.
“We would come up with a new brand for our hotels in India. We are still looking at our options and would soon announce the brand,” Lamba said. Apart from hospitality, Dawnay Day group operates an investment and fund management arm and financial services.