Indian Hotels Company Ltd's [Get Quote] Ginger Hotels will invest over Rs 204 crore (Rs 2.04 billion) to set up 17 budget hotels in tier-II cities in the next 12 months. "In the next 12 months, the total number of Ginger hotels will go up to 25 from the current eight. Each 100-room Ginger hotel on an average will be set up at a cost of Rs 11-12 crore (Rs 110-120 million), excluding the land cost, which varies from city to city," Prabhat Pani, chief executive officer, Roots Corporation, which operates the Ginger gen-next 'smart basics' hotels chain, told PTI.
Roots Corporation is a 100 per cent subsidiary of IHCL, which also promotes the Taj Group of hotels. The investment would be financed by a mix of debt and internal accruals.
"We are not looking at raising any private equity," he said. The hotels would come up on less than one-acre land each in cities like Ludhiana, Pantnagar, Agartala, Pondicherry, Guwahati and Baroda, Pani said.
The eight Ginger hotels are in Nasik, Pune, Bangalore, Mysore, Thiruvananthapuram, Bhubaneshwar, Haridwar and Durgapur in West Bengal
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