India-based Lalit Suri Hospitality Group is all set to invest nearly Rs22bn ($395m) over the next five years, in a bid to expand in luxury and mid-segment hotels in India and abroad.
The company has already spent Rs10bn ($180m) in the last five years, and plans to open its first international hotel in London, UK, by 2014 with an investment of £28m.
At present, Lalit Suri has 1,796 rooms from 17 properties and expects to have a total room inventory of 3,600 rooms with 45 properties in the next five years.
Lalit Suri Hospitality Group chairperson Jyotsna Suri said the company is not looking at adding more properties, apart from the one in London and those planned in Dubai and Thailand.
"The London property to be named ‘The Lalit London’ will be a four-star high end boutique hotel with 70 rooms. We have bought the property from Berkeley Homes for a guide price of £15m," Suri said.
The group will invest another £12m to £13m in renovation and development of the property, through which it expects to break even in three years’ time from the start of operations.
Lalit Suri has invested Rs1bn ($18m) mainly for purchase of land in Thailand.
For the Dubai project, which was proposed to be taken up in a 50:50 joint venture with the Nakheel group, the company invested another Rs300m ($5m) to purchase land.
As part of its expansion plans in India, the group will set up new properties in Kolkata, Chandigarh, Ahmedabad, Amritsar, Pune and Dehradun.
The funding of the investment for the new hotels would be through a mix of internal accruals and debt, according to the company.