Hospitality major EIH Ltd, which runs hotels and resorts under Oberoi and Trident brands, today said it would move ahead with capex of Rs 1,000 crore over the next few years on its proposed Bangalore and Goa properties.
"Except Bangalore and Goa properties, we do not have any other plan for investment in more hotels right now. Since the last few years we have been focusing on management contracts and we will continue in this direction," EIH Vice-Chairman and CEO S S Mukherji said.
"Total investment in these two properties will be Rs 1,000 crore and of which equity infusion would be around Rs 400 crore," EIH Executive chairman RPS Oberoi said.
Mukherji said that capital investment that would be needed over the next 5-6 years might be met through internal accruals.
Construction could begin in the next one year for the Bangalore project which would be a 250 room hotel plus 65 villas while Goa would be a 80-room hotel.
EIH was aiming to foray into China and Thailand markets and had initiated early discussions with potential partners for management contract, Oberoi said.
With signs of revival in the global economy, EIH was also reviving its plans for management contract for two hotels in Abu Dhabi, the officials said.
Speaking about the industry, Mukherji said that there was pressure of average room rent (ARR), but the company was focussed on realisation per room which had positive impact of Rs 12 crore.
However, in April-June 2014 ARR was Rs 8,373 against Rs 7,723 in the corresponding period last year, Mukherji added.
