The tata group intends to invest Rs 1,500 crore (Rs 15 billion) in setting up 150 'value hotels' in India and abroad over the next five years.

Raymond Bickson, managing director of The Indian Hotels Company Ltd, a Tata company, told reporters that they were looking at under-served markets in India, China, Africa and regions in the Persian Gulf.

Sheila Nair, chief operating officer of Roots Corporation Ltd, a wholly owned subsidiary of IHCL, said the company plans to set up 12-14 hotels with 1,500 rooms in the first 12 months.

The investment requirement for each hotel would be Rs 10 crore (Rs 100 million), she said.

Value hotels have been branded "indiOne", Bickson said, adding being a no-frills hotel chain, it offers low-cost hospitality to its customers who get value for money at an affordable price.

"There is no such hotel concept in the world now," he said.

For this new category of hotels the company is targeting secondary and tertiary markets as well as suburban locations and pilgrimage and cultural centres.

The indiOne hotels would be priced at Rs 900 for a single room and Rs 950 for a double room.