Royal Orchid Unveils Indian Expansion Plan

24th August 2010 (Last Updated August 24th, 2010 18:30)

Royal Orchid plans to raise Rs1,500m ($32m) through bonds to help finance the construction of its new hotels in India. The company said part of the proceeds will go to swapping an earlier loan of about Rs500m ($10.6m) and the remaining money will be used to fund new hotel acquisitions.

Royal Orchid plans to raise Rs1,500m ($32m) through bonds to help finance the construction of its new hotels in India.

The company said part of the proceeds will go to swapping an earlier loan of about Rs500m ($10.6m) and the remaining money will be used to fund new hotel acquisitions.

Royal Orchid, which owns around 1,104 rooms, plans to expand a further 678 rooms this year and expects the new properties to increase revenues by 30% over the next three years.

The company has finalised an Rs3bn ($64m) expansion plan and is looking to increase the number of its properties to garner a larger share of the Rs368bn ($8bn) Indian hospitality market.