Pride Group to set up a 5-star hotel in Mumbai

Mumbai, Dec 19 (UNI) Pride Group-promoted Pride Hotels plan to construct a 200-room five star hotel near the Mumbai International Airport.

Announcing this here today, Pride Group Chairman S P Jain stated that the Group has received a significant investment from Kotak India Real Estate Fund for part financing of its Rs 340 crore expansion-cum-renovation plan.

Mr Jain said that the Group would also bring an Initial Public Offer (IPO) for this purpose in the first quarter of next year.

At present, the Group has hotels in Pune, Nagpur, Ahmedabad and Chennai, while its upcoming hotel at Bangalore will open in June 2008.

''With this key investment from Kotak Realty Fund and Mauritius-based Primary Fund, we are now close to finalising sources of funds for our expansion plans,'' Mr Jain said.

''As against the demand of total 2,00,000 rooms, there are only 1,10,000 rooms, thereby leaving a shortage of 90,000 rooms.

Therefore, the Department of Tourism has offered incentive scheme for construction of one to three star Hotels,'' he added.

The Group aims to utilise the funds towards setting up new hotels in Mumbai, Goa, Bangalore and Alibaug. It has recently acquired 4.5 acres land at Alibaug, where it proposes to set up a resort cum spa.

The Group now offers total 430 rooms in Nagpur, Ahmedabad, Pune and Chennai and post-expansion it will offer 1,126 rooms in the five star category of hotels.

Currently, the Group owns 11 food outlets, including restaurants, coffee shops and bars, and 19 banquet halls and conference rooms.

UNI