Brigade Hospitality eyes more hotels, to invest Rs 700 crore

Brigade Hospitality eyes more hotels, to invest Rs 700 crore

Brigade Hospitality eyes more hotels, to invest Rs 700 crore
Brigade Hospitality Services — the hospitality venture of homegrown real estate major Brigade Group — has planned a strong expansion drive in the hotel space, which will involve strategic tie-ups with global hotel chains, culminating in opening eight new properties across India.

The company, which already owns two properties namely Grand Mercure and Sheraton Grand in Bengaluru that collectively hold 356 keys, will add an additional 1,500 keys through its new hotels in the next 4-5 years.

Talking to Deccan Herald, Brigade Hospitality Services Executive Director Vineet Verma said, “As part our expansion, we have signed an MoU with the InterContinental Hotels Group (IHG) to open around 10 hotels, of which around four are under development (including Holiday Inn and Holiday Inn Express properties, spread across Bengaluru, Chennai, Mysuru, etc). We are also planning a new Grand Mercure property at Mysuru. We have a tie-up with Starwood Hotels for a Four Points by Sheraton which is coming up at Kochi. We are also looking to tie up with an international hotel brand for our proposed hotel at GIFT City, Ahmedabad, which will be our first project outside South India. Besides, we have decided to open hotels where we may derive good business, which may also include tier-2 and tier-3 cities.”

Investment plan

Verma said that the company is investing around Rs 700 crore towards its eight planned hotels, which will be funded through a combination of internal accruals and debt. “As part of our hotel business, we own the risk and reward of the property. We invest in the construction and own the properties, while the international operators who work with us, brand and manage them. We pay them specific fees (base fee and incentive fee) as part of the terms,” Verma said, referring to the realtor’s involvement in the hotel space.
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