Mumbai, March 22: Sarovar Hotels and Resorts will raise Rs 400 crore to fund its expansion plans for the next four years.
The amount will be raised through debt and internal accruals.
The company, a pioneer in the mid-market hotels segment, is planning to set up at least 75 hotels over the next four years.
Of this, 33 properties are under development. Sixteen hotels will be inaugurated later this year across various categories, said Anil Madhok, managing director of Sarovar Hotels and Resorts.
The money will primarily be used to set up around 10 Homtel budget hotels, with 100 to 150 rooms each.
We find it is easier and faster to break even in the budget category, typically in two years. We build around 100 rooms in a 45,000-square-feet area, said Madhok.
Sarovar Hotels and Resorts also plans to hit the market with an IPO in three years, he added.
The company runs 36 properties with an inventory of 2,500 rooms under its domestic brands Sarovar Premier, Sarovar Portico, budget brand Homtel, Park Plaza and Park Inn.