Royal Orchids ties up with Ramada to manage

Mumbai, Dec 6 (UNI) The Royal Orchids Hotels Ltd (ROHL), one of the largest hotel chains in Karnataka, has signed an exclusive territorial agreement with Ramada Worldwide (part of Wyndham Group Worldwide).

The agreement envisages Royal Orchids to manage and develop hotels under the Ramada brand in India.

Briefing newsmen here today, ROHL Chairman and Managing Director Chender Baljee said, ''This tie up will power an international brand with Indian management and hospitality. Also this partnership endorses and serves to consolidate our strength in the four star upper mid scale segment to which we cater.'' Further, he said the company is committed to build 10 hotels under the Ramada brand itself as proof of commitment to this venture. Mr Baljee said ''Royal Orchid in turn, will manage third party owned Ramada hotels across India as well.'' Replying to a question, Mr Baljee said the Group's aggressive expansion plan envisages setting up and managing 40 hotels in the next five years involving an investment of over Rs 500 crore.

Explaining the funding pattern, he said the IPO proceeds raised in February this year coupled itself has not been fully utilised.

Besides, Mr Baljee continued, its internal accruals and average revenue for the next five year, should suffice to leverage the funding required for the company's planned expansion.

Currently, it has six hotels and four new hotels are coming up at Hyderabad, Pune, Jaipur and New Delhi.

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