Hospitality major Bharat Hotels, which operates seven hotels under the brand name 'The Grand' plans to invest Rs 1,200 crore over the next three-four years for setting up 10 more hotels, including two abroad.
The group has also decided not to renew its franchise agreement with global chain 'The Intercontinental'. It would rebrand its hotels under 'The Lalit' brand, in memoriam of the group's late founder Lalit Suri.
"We are investing around Rs 1,200 crore in the next three-four years to open eight more hotels across India and another two in Dubai and Thailand," Bharat Hotels Chairperson and Managing Director Jyotsana Suri told reporters here.
The group has an inventory strength of 1,500 rooms at its seven existing hotels in New Delhi, Mumbai, Goa, Bangalore, Srinagar, Udaipur and Khajuraho.
"Once our 10 hotels become operational we will add another 2,100 rooms and take our inventory to 3,600," Suri said, adding that the new hotels would come up at various places, including Kolkata, Jaipur, Chandigarh and Ahmedabad, besides the one in Dubai and Thailand by 2010.
When asked about the source of its funding, she said the group would finance through internal accruals and borrowing.
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The group had clocked a turnover of Rs 500 crore last fiscal. "This year the growth in turnover will be either flat or at most 5 per cent," she added.
The group also announced that it would no longer be associated with The Intercontinental, with which it had a franchise agreement to use the brand.
"We had the agreement for use of their 'Intercontinental' brand name for four of our hotels. The agreement period for our Delhi and Goa hotels have culminated and that of our Mumbai and Goa properties would also expire within 18 months and we are not renewing them," Suri said.
She added the group would henceforth manage all its hotels under the brand name 'The Lalit'.