US-based Berggruen to inject Rs 1,150 cr by 2012 in India

New Delhi, July 3 (UNI) US-based Berggruen Hospitality Pvt Ltd will invest Rs 1,150 crore to set up 38 budget hotels, resorts and apartments pan-India over the next five years.

''With an equity capital of Rs 400-450 crore and another Rs 700 crore through debt from financial institutions, we plan to set up 38 hotels by 2012,'' Berggruen Hotels Managing Director and Chief Operating Officer Sanjay Sethi told reporters here.

The company will put in additional investment as and when required, he said.

The operations will start in 10 hotels by the end of next year, Mr Sethi added.

The company has purchased sites in Thiruvananthapuram, Goa, Kovalam, Cochin, Bangalore, Pune, Ludhiana and Baroda.

It is also eyeing sites in Chennai, Jaipur, Jammu, Bhuwaneswar and Delhi, Mr Sethi said.

Work has been started on the Goa site, which will be operational by October this year and the Thiruvananthapuram and Kovalam hotels will be operational by June 2008, he added.

The company also plans an equal number of hotels overseas and is pursuing opportunities in Vietnam, Egypt and Moroco, Mr Sethi added.

Asked whether the company was eyeing the upcoming Commonwealth Games, Mr Sethi stressed that it was looking at an extended stay in the country.

UNI