Parsvnath Hotels in JV with Royal Orchid

By siliconindia   |   Thursday, 21 February 2008, 21:45 IST
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New Delhi: Parsvnath Hotels, a wholly owned subsidiary of Delhi based real estate developer Parsvnath Developers, has formed a joint venture (JV) with Royal Orchid Hotels based in Bangalore. The JV will develop 10 hotels at an investment of Rs 500 crore ($125 million), reported The Economic Times. Sources close to the development said that Parsvnath holds a majority stake in the JV called Parsvnath Royal Orchid Hotels. Royal Orchid Hotels, promoted by C K Baljee, is listed on the Bombay Stock Exchange, and reported net sales of Rs 33 crore in the December quarter. The proposed hotel projects, which include four five-star and four four-star hotels, are likely to be completed in the next five years. In addition, the JV company also plans to develop resorts and service apartments. Over 1,000 rooms are likely to be built under the joint venture. According to the plans by Parsvnath Developers, at least 17 hotels across 13 cities would be operational by 2011. The company recently tied up with tobacco and hotel company ITC to manage 50 hotels, comprising over 4,000 rooms, across the country in the next five years. As per the agreement, Parsvnath will own and develop the hotels at an investment of Rs 2,500 crore ($625 million) and Fortune Park Hotels, a subsidiary of ITC, will run them under the brand names Fortune Select, Fortune Park and Fortune Inn. Royal Orchid Hotels, which runs seven hotels and resorts in Bangalore, Mysore and Jaipur, has been on an expansion spree. Royal Orchid's subsidiary Icon Hospitality acquired the 130-room Royal Orchid Central Hotel in Bangalore for Rs 82 crore in November. A month later, the company acquired 30-acre property in Dar E Salaam in Tanzania.

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