Chennai, India, January 29, 2010 --(PR.com
)-- The company has informed the stock exchange that it will take on 15-year lease a property in Jubilee Hills, Hyderabad, where the company will operate 27 serviced apartments initially and add 18 more in the second phase. The company also plans to set up a budget hotel in Chennai on 1.5 acres leased space on the East Coast Road. This will be a 100-room hotel with two food and beverage outlets.
Mr D. Sudhakara Reddy, Chairman and Managing Director, Regaliaa Realty, said that this was part of the company’s plans to expand across South India. The company will invest Rs 35-40 crore in expanding the Homcourt chain. The funding would mostly be generated internally and less than 25 per cent would be debt.
Over the next two years Homcourt serviced apartments will also come up in Kochi and Coimbatore, where negotiations are on for leasing land.
Early this year, Regaliaa set up the Homcourt Serviced Apartments in Chennai, and later also started work in Bangalore, where it is setting up 90 apartments.
On the budget hotels, he said the costing is being worked out.
The East Coast Road has major tourist attractions but the hospitality was dominated by resorts and high end hotel chains. Regaliaa was addressing this gap with its budget hotel where families can rent a room in the range of Rs 2,500-3,000. Similar budget hotels also planned in Hyderabad and Bangalore, he said.
The company has opted to go for a 15-year lease of land for its projects with a provision to extend the lease by another 15 years to save on the cost. There would be no investment in land and building but Regaliaa would furnish the building and manage the project to its own standards.