Hospitality firm Royal Orchid Hotels today said it will invest Rs 200 crore in the next eight months for domestic expansion, besides setting up a hotel in Tanzania, Africa from next year.
The company which currently operates fifteen properties under the Royal Orchid brand across India, is currently adding atleast seven new hotels to its portfolio at locations including Jaipur, Hyderabad, Baroda, Mumbai and Shimoga.
"In the last two years, the company has already invested Rs 300 crore in expansion, and another Rs 200 crore will be invested in the next eight months to set up seven new properties," Royal Orchid Hotels Chairman and Managing Director Chender Baljee told PTI.
He said with the planned expansion the current total capacity of 1,300 rooms will go up to about 2,100 rooms.
As a part of the overseas expansion plan, the company will also start work on a new project in Tanzania.
"We already have a land in Tanzania and will begin construction to set up a hotel under Royal Orchid brand there from next year," Baljee said without giving investment details.
The company operates hotels in four different categories -- five star, four star, holiday resorts and service apartments under the mother brand 'Royal Orchid'.
In August this year, the company's board had approved a proposal to raise up to Rs 150 crore to fund the expansion.
"We will raise additional Rs 150 crore as an when required," Baljee said.
For the financial year 2009-10, the company posted total revenues of Rs 77.83 crore and a net profit of Rs 8.28 crore, according to the Bombay Stock Exchange.