Chennai─based Appu Hotels Ltd, which owns two five─star hotels — Hotel Le Royal Meridien in Chennai and Le Meridien in Coimbatore — is planning for an initial public offering (IPO) to support its Rs 500─crore expansion plan. According to a report in The Business Standard, the company is planning to come out with an IPO by the end of next year.
Palani G Periasamy, Chairman, Le Royal Meridien, said the company was planning to double its capacity in the five─star category from the current 500 rooms, with an outlay of around Rs 500 crore over the next two years. The company is planning to set up three more five─star hotels, including a second property in Chennai and two in other parts of the state.
The Rs 1,250─crore Appu Hotels Ltd is a part of PGP group, which has diversified business activities including property and infrastructure development, educational institutions and sugar and chemicals business.