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The Ajit Kerkar-run Tulip Star Hotels, after buying out the state-owned Juhu Centaur, is now acquiring a stake in a five star resort in Goa.
Ajit B Kerkar, chairman, said, "We will be investing in a Goa property which is a 5-star resort and covers around 250 acres. The property is owned by Crystal Resorts, promoted by Mark Rodrigues."
The project is currently in the development stage.
The former Indian Hotels honcho was instrumental in turning the Tata group company from a single-hotel firm to a 60-property chain, making it India's largest. He quit the group in 1997 under controversial circumstances.
If the deal materialises, this will be Tulip's second investment in Goa. It already has a strategic investment in the 5-star Bogmalo Beach Resort.
Even there, Kerkar plans to increase its holding to 50 per cent, according to senior company executives.
The company also owns stake in Aquaserena in Kerala and is planning to hold 100 per cent in the property, they added.
Hospitality industry sources said, "It requires around Rs 200 crore (Rs 2 billion) to set up a 5-star resort in Goa."
Currently, the premium properties in Goa enjoy a occupancy level of about 70 per cent. Tulip Star bought over the erstwhile Juhu Centaur for Rs 153 crore (Rs 1.53 billion) last year.
Established in 1998, Tulip Star manages over 10 properties in the country. Tulip Star, is a subsidiary of Cox and Kings India, the local arm of the UK-based travel agency.
The Kerkar family owns a majority stake in the company, with Cox and Kings and Piem Hotels (a subsidiary of Indian Hotels Company ) holding the balance stake.
The Tatas had got involved with Cox and Kings (India) during the Kerkar's tenure as head of Indian Hotels.
The Taj group, as part of its restructuring, plans to divest its interests in the travel agency. Tulip Star's properties are marketed by Cox and Kings India.