Royal Orchid to develop a resort in Tanzania

Mumbai: Royal Orchid Hotels, a Bangalore based hotel group, would be making a foray in the international market with its plans to develop a 150-room beach resort over a 30-acre property in Dar-es-Salaam, Tanzania.

The Chairman and Managing Director of Royal Orchid Hotels, Mr Chander Baljee, told newspersons on Tuesday that the group would be investing $25 million to develop the resort, which is expected to start operations in 2010.

Royal Orchid would be funding the project through debt and internal accruals, he added.

The group bought the land through acquiring the holding company, Multi Hotels, for $2 million, said Mr Baljee.

As regards expansion within India, the hotel group had earlier expressed its intention to have a pan India presence by 2010 with an investment of Rs 500 crore and doubling its room inventory from the current 750.

Though currently operating in four and five star category, Mr Baljee said the group would be open to all options.

“Our focus is 4 and 5 star but if something comes our way and it makes sense we will not say no to it.”

Royal Orchid currently operates nine hotels in Bangalore, Mysore, Pune, Jaipur and Hyderabad under brands such as Central, Golden Suites, Get Away, Resorts along with Peppermint, which is a budget category hotel.

The group also entered into an agreement with Wyndham Worldwide Corp in December 2006 to set up 10 hotels under the Ramada brand over five years.