EIH lines up Rs 1,000 cr capex for B'lore and Goa

Hospitality major EIH Ltd, which runs hotels and resorts under Oberoi and Trident brands, on Wednesday 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 capital investment that would be needed over the next 5-6 years may 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.

 Mukherji said that there was pressure of average room rent, but the company was focussed on realisation per room which had positive impact of Rs 12 crore.

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