The Visakhapatnam-based Daspalla group expects to complete its Hyderabad project by the end of December. The group, which has been in the hospitality business for the last 25 years, is constructing a 110-room hotel in the city with an investment of Rs 27 crore.
“Most of the civil works have been completed and we are planning to inaugurate the hotel by the end of this year. So far, we have spent about Rs 16 crore on the project,” Daspalla group managing director Raghavendra Rao told Business Standard.
The four-star hotel will also have a parking facility, which could accommodate 250 cars at a time, among other things, he added.
With the Hyderabad project, the group is targeting a turnover of Rs 20 crore in 2010-11. Of the total project cost, promoters’ contribution is Rs 11 crore as equity while Rs 16 crore has come from financial institutions, he said.
The company has spent Rs 5 crore during this fiscal to renovate its facilities at Vizag and Kakinada. The group operates three hotels with 226 rooms and three restaurants at these two places.
The group, which had earlier set a target of Rs 36 crore turnover during this fiscal, had to revise it downwards due to the recession.
“We now expect to close the current financial year with a turnover of Rs 32.5 crore as against Rs 26 crore during the last fiscal, which is an increase of about 25 per cent compared with the preceding year,” Rao said.
