The Hero Group of automobile makers on Monday announced its foray into the hospitality sector. Its first property is expected to come up in Gurgaon by the end of 2012. The company is in talks with several international brands to sign a management contract, including Four Seasons, JW Marriott and Conrad.
The company has bought 3.9 acres from Punjab National Bank and will finish the construction work within 12 months, said Pankaj Munjal, managing director, Hero Motors. While the first part of the payment of Rs 105 crore has been made, Munjal did not disclose the entire amount paid for the deal. “We have a land bank all across India, but as of now, our focus is on making this one hotel operational.”
According to industry experts, the sector offers annuity income to the owners, while the asset value continues to appreciate, making it a lucrative business.
The total investment towards development of the Gurgaon property is going to be Rs 650 crore.
