Aloft Hotels, a franchisee of Starwood Hotels & Resorts Worldwide, Inc, is planning to add 830 rooms across five cities in India by the first quarter of next fiscal with an investment of Rs 500-550 crore.
Speaking to reporters after launching the company’s first hotel in India at Chennai, Kumar Sitaraman, chairman and chief executive officer, Auromatrix Hotels Pvt Ltd, said that it had invested Rs 90 crore in Chennai in setting up a 130-room hotel and was planning a 170-room facility at Bangalore, which is expected to go on stream by the end of this month.
The company is also planning a 180-room hotel at Coimbatore, a 170-room hotel at Ahmedabad and another 180-room one at Chandigarh. “All the hotels would go on stream during the first quarter of next fiscal and each project would attract an investment of around Rs 100-110 crore,” he said.
Auromatrix is the holding company which owns UrbanEdge Hotels which would develop these four hotels.
Aloft Hotels is a franchisee of Starwood Hotels & Resorts Worldwide, Inc, a hotel and leisure company with 11,000 properties in more than 100 countries.
These projects would be funded through debt and equity, Sitaraman noted.
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Mauritius-based CPI India 1 Fund has an equity stake in the company which promotes these projects and the debt portion would be funded through a consortium led by State Bank of India.
Udday Kumar Krishanan, managing director, Auromatrix Hotels Pvt Ltd, added that the company was looking at 55-60 per cent occupancy ratio to start with and expects average recovery of around Rs 6,000-6,500. “We expect Rs 60-70 crore of turnover from each of our property,” added Krishanan.