The Rs 1,000 crore diversified Varun group has tied up with France-based hotel chain Accor to operate its upcoming five-star hotel at Visakhapatnam.
The hotel ‘Novotel Visakhapatnam Varun Beach’ will open in July 2010, V Prabhu Kishore, chairman and managing director, Varun Group, told media persons here on Tuesday. The management agreement was signed by Varun group’s Sea Valley Resorts Private Limited and Accor Hospitality.
The group is spending about Rs 125 crore, excluding land cost, to set up the 240-room hotel. While promoters would invest Rs 43 crore as equity, the remaining will come from financial institutions.
“With the launch of new terminal port and improved flight connections and probable international linkage we believe that there will be a need for a world class hotel brand like the Novotel in Vizag,” Kishore added.
Accor Hospitality is already operating 3 hotel in the country — one at Mumbai and two at Hyderabad. "We have lined up 15 more hotels in 9 cities with 4,039 rooms,” Uttam Dave, head - development, Accor Hospitality, said.