Entertainment World Developers (EWDPL), a partner firm of Phoenix Mills, is in the final stages of tying up with London’s AIM-listed hospitality company, Indian Hospitality Corp (IHC), to run its five 3-star hotels in the country, said a top company executive.
EWDPL was earlier in talks with Sarovar Hotels and Resorts to manage its 11 hotel properties, but these did not materialise, the executive said. EWDPL’s budget hotels are coming up in tier-II cities such as Nanded, Ujjain, Raipur, Jabalpur and Bhilai and are expected to be completed in the next 6-9 months.
When asked, Manish Kalani, managing director of EWDPL, said: “We have signed the term sheet and are finalising the agreement.’’ EWDPL is also developing another seven hotels in the country. Asked about the management of the other hotels, Kalani said: “The five hotels are nearing completion soon and the rest of them are a year away. We will decide about others later.’’
EWDPL would spend nearly Rs 450 crore on building the 11 hotels, Kalani had told Business Standard earlier. These hotels are being set up on top of the malls developed by EWDPL in these cities, he said.
IHC, majority owned by investors such as Navis Capital Partners and Hayground Cove, bought Gorden House Hotels in 2007 as part of its acquisition of the India-based Mars group and air catering company SkyGourmet Catering Pvt Ltd. IHC runs casual dining formats such as China Joe, Just Around The Corner and Pizzeria and Pasta Bar and gourmet dining formats such as Tendulkar’s and Just Jazz By The Way.
EWDPL is also developing 10 townships called Treasure Town and affordable housing complexes called Treasure Vihar in these cities as part of its diversification plans. The K2C group has picked up a 40 per cent stake in a 130-acre township in Indore for $20 million (Rs 100 crore) and Gaurav Dalmia’s Landmark group has picked up a 49 per cent stake in Udaipur for $5 million (Rs 25 crore), while Phoenix Mills has bought a 5 per cent stake in Raipur for a similar amount, he said. The investors also have stakes in its affordable housing projects, he added.
EWDPL is planning a Rs 500 crore initial public issue at the end of this year to fund its expansion plans.
