CASH COURSE

New Delhi, May 12: Investments in mid-segment hotels are on the rise in India.

Some well known entities to enter the sector are Ginger Hotels, which belongs to the Taj group, Bharat Hotels, Parsvnath Developers, Lemon Tree and the Bird group.

Delhi-based Lemon Tree has earmarked an investment of Rs 2,150 crore for setting up 18 hotels in the country by 2011. The company has already invested around Rs 1,050 crore in five hotels and plans to invest another 1,100 crore in hotels and shopping malls in the next three years.

“By 2011, we will have a capacity of over 2,500 rooms with a presence in 18 cities across India,” said Patu Keswani, chairman and managing director of Lemon Tree.

“We have already invested Rs 1,050 crore in buying properties and in setting up malls and hotels, and now we have finalised plans to invest another Rs 1,100 crore in the next three years to expand our projects,” Keswani said.

Bird Group subsidiary, Bird Hospitality Services, is planning to set up 20 hotels by 2015. The group has recently forayed into hospitality with a 50:50 joint venture with Thailand-based hospitality chain Dusit Hotels & Resorts.

Investment in the range of $300-400 million has been set aside for the hotel venture. The funds will be raised through debt and internal accruals, said Ankur Bhatia, executive director of Bird Group.

Property developer Parsvnath also has plans to develop 17 hotels across India and aims to build up to 100 hotels in the next three to five years. The company has formed separate joint ventures with the hotels unit of ITC Limited and Royal Orchid Hotels to develop as many as 60 hotels.