Daspalla group-promoted Jubilee Hills Resorts Company is likely to open its four-star hotel in Hydarabad by June this year.
The group, which operates three 3-star hotels in Visakhapatnam and Kakinada, has taken 30 per cent stake in the project.
The total cost of the project is about Rs 32 crore. While the Daspalla group has invested Rs 11 crore, the remaining amount has come as loan from the state finance corporation and Andhra Bank, M Raghavendra Rao, chairman, Daspalla group, said. The project will have 110 rooms, two restaurants and two conference halls.
During the financial year 2009-10, the group’s occupancy rate dropped to 75 per cent. “Last fiscal we did not hike room rentals while food and beverages prices were increased marginally by 5 per cent. At the same time, food provisions purchasing prices were raised by 15 per cent and salaries by 10 per cent in 2009-10. This impacted our margins significantly,” he said.
Daspalla group achieved a turnover of Rs 34.5 crore in the financial year 2009-10 as against Rs 33.86 crore in the preceding year.
