Grand eyes London hotel

The Lalit Suri-promoted The Grand Hotels plans to acquire a hotel in London.

The group, which is in talks with three hotels, is expected to finalise the deal shortly. This is a part of the group's strategy to branch out to lucrative international markets.

"We are going to expand in the international market. London is my first priority, as it is a market which has seen a considerable amount of traffic from India. We are in talks with three hotels now. We will have one property in London to start with," said Suri, who is the chairman of the company.

According to Suri, the company is targeting hotels in the range of £40-50 million.

"I think that is the right price for a hotel. We will not be willing to pay a huge price for a property as there are some of the companies which are demanding a huge price," Suri said.

After the London project, Suri will be eyeing other international markets with substantial Indian presence.

"India has about six million people traveling abroad to various destinations. That is a good market for a hotel chain like ours. We will finalise the plans as and when the opportunities come," he said.

The chain is embarking on a Rs 1,000 crore expansion plan in India with hotels planned in Kerala, Surat and Hyderabad. Besides, it is planing an additional property in New Delhi. The group is looking at having about 10-11 properties over the next few years.

Suri, however, ruled out an immediate entry into the low-cost hotel segment. He said the land related rules will have to be relaxed to make the low-cost hotel model a viable proportion.

He also said that the group is exploring the option to start an air charter service. It currently owns one aircraft and plans to add more aircraft to its fleet.