"We are looking at 38 hotels to be operational by 2011-12. About Rs 1,100 crore investment will go into developing these hotels," Berggruen Hotels managing director Sanjay Sethi told PTI.
He said once the 38 hotels became operational, another 12 were expected to be under construction. The investments would be funded through equity and debt. "Berggruen Holdings is investing about Rs 400 crore (Rs 4 billion) as equity capital while Rs 700 crore will be funded through debt," he said.
The company's first property in India - a 154-room resort in Goa - would be operational by October this year. About 8-9 hotels would start by 2008, he said. Berggruen would develop hotels and resorts at all Tier I, II and III cities across the country.
Besides, the company was looking at managing hotels for other developers as well. Some of the cities where the company is coming up with hotels are Thiruvananthapuram, Kovalam, Kochi, Pune, Kolkata and Jammu. It would develop three hotels in Bangalore to cater to the wide demand for quality budget hotels in the city.
Berggruen Holdings manages and invests its proprietary capital that exceeds 1.5 billion dollars in a range of asset classes including direct private equity, stocks and bonds, hedge funds, private equity fund and real estate.
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