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Coffee Day Hotels & Resorts to invest Rs 200 cr on expansion

Plans to open 7 new resorts by 2018

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Press Trust of India New Delhi
Last Updated : Apr 12 2013 | 2:56 PM IST
Coffee Day Hotels and Resorts today said it plans to invest up to Rs 200 crore to open seven new properties under the brand 'The Serai' in the next five years as part of its expansion plans.

"We are planning to invest between Rs 150 crore to Rs 200 crore to open 7 new resorts in the country by 2018," Coffee Day Hotels and Resorts Head of Marketing Anand Menon told PTI.

The next property in pipeline is at Havelock Island in the Andaman & Nicobar Islands that will be opened by June this year followed by another resort at Mangalore, he added.

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The company currently has three resorts in Chikmagalur, Kabini and Bandipur in Karnataka.

Coffee Day Hotels and Resorts is a subsidiary of Amalgamated Bean Coffee Trading Company Ltd, which runs the popular Cafe Coffee Day chain.

"All our properties are, and will be, in the luxury leisure segment as we feel there is a sizable potential for growth in the segment," Menon said.

The company is mainly focusing on domestic tourists for growth as such travellers constitute 70% of the company's business, he added.

On being asked about the business model the company intends to follow, Menon said, "All the resorts will be owned and managed by the company. We are not looking at management contract or franchise model for growth."

This will also enable the company to strengthen its current workforce by nearly 700 people, taking the total employee strength to 1,000, he added.

Amalgamated Bean Coffee Trading Company produces, markets and sells coffee and tea in India and abroad. The company operates through five divisions: Cafe Coffee Day, Coffee Day Xpress, Coffee Day Beverages, Coffee Day Fresh and Ground, and Coffee Day Exports.

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First Published: Apr 12 2013 | 2:54 PM IST

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