Duet Group plans to open 5-star hotel in Bangalore

Duet Group plans to open 5-star hotel in Bangalore

Dilip Puri, CEO of the DIH, told Deccan Herald here: “We are aggressively seeking investment opportunities in Bangalore and are at the final stages of concluding negotiations to acquire an under construction 5 star hotel in Bangalore. We expect to conclude the deal early November.”

The property will have 300 rooms and DIH is in discussion with various international brands to manage the hotel. 

“We see Karnataka as a key state in our overall strategy for India due to the vast potential for business hotels in Bangalore, Mysore, Mangalore etc. In the latter two cities, we will look to do 3 or 4 star hotels with 100-150 rooms each. Apart from IT, we see Bangalore as an emerging hub for the aviation industry as well as  financial services sector”. DIH has already invested nearly $50 million in projects in Jaipur, Pune, Ahmedabad and Indore. The recently launched Jaipur project is run by Sheraton Hotels & Resorts under the brand name, Four Points.

The Pune project will be operational by September 2010 followed by Indore and Ahmedabad projects. A $26m, 210-room, 5-star hotel is coming up near IT district in Hyderabad. Two more projects would be coming up at Lucknow and Nashik. By the end of this calendar year, the fund will complete investments of $78 million equity across eight projects.

Puri said due to significant corrections in the real estate market, land valuations have been rationalised and sellers are more realistic in terms of what buyers are prepared to pay for land to develop hotels. “We also see opportunities to drive more efficiencies in our project costs, thereby allowing us to build more economically and realize better returns”.