Chennai-based Oriental Hotels Ltd Plans Expansion

Chennai-based Oriental Hotels Ltd is planning to expand its footprint by adding more hotels. The company will add two more properties to its existing eight in the next two years, when its total room inventory will be 1,250.

Currently, the company’s eight properties are managed by Taj. The proposed properties in Coimbatore and Bangalore will also be managed by Taj. While the Coimbatore property, which is likely to be up and running in the next few months, will have 180 rooms; its property in Bangalore will have 200 rooms and will come under the ‘Gateway’ — the mid-market brand of Taj. Besides, Oriental Hotels is also in the process of renovating and upgrading its hotels in Chennai — Taj Coromandel and Taj Fisherman’s Cove.

The company has invested Rs 178 crore in the last of couple of years for the ongoing renovation and expansion and has committed another Rs 160 crore over the next two years. Recently, the company acquired a 126-room property in Thiruvananthapuram as part of its upper upscale category hotel. Over a period of time, the company also has accumulated six acres in Sriperumbudur near Chennai, four acres in Mysore and six acres in Gundu Island off Kochi, and two acres in Coonoor. “This lends immense potential and flexibility to our growth plans. We will unlock this at an opportune time,” says D Varada Reddy, Managing Director. The company posted a turnover of Rs 48.27 crore for the quarter ended June 30, 2010 against Rs 36.94 crore in the corresponding previous year period.

News Published Under:   Bangalore, Chennai, Hotel Industry in India, Real Estate India |

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