Roots Corporation, which is a subsidiary of Indian Hotels Company Ltd, currently operates 24 hotels and the 25th one was inaugurated today at Faridabad in Haryana.
"While we will open multiple hotels in bigger cities like Delhi, Mumbai, Chennai and Kolkata, we are also looking to set up properties in smaller places like Nagpur, Patna, Coimbatore and Kochi," Pani said, adding on an average one property would have about 100 rooms.
For owning the properties, the company opt for various models, including acquisition of existing hotels, leasing, management contract or fully developed by Roots Corporation. "If any existing facility fits into Ginger model, then we are open to acquire and convert it. We are looking at this option," Pani said without identifying any possible target. Out of these proposed 55 properties, seven hotels are under construction in Noida, Greater Noida, Chennai, Bangalore, Jaipur, Chandigarh and Amritsar and will be opened in the next 12-15 months, he added. "While some of these hotels are leased ones, some are constructed by us. The total investment will be Rs 60-70 crore for these seven hotels, comprising a total of around 600-700 rooms," Pani said. When asked about the mode of funding its investment, he said it will be done through equity and debt. The company had last year inked a deal with Singapore based private equity firm Omega TC Holdings to raise Rs 150 crore through multiple tranches by selling a minority stake in Roots Corporation. Additionally, Omega acquired Compulsorily Convertible Preference Shares from some existing holders for an aggregate consideration of Rs 70 crore. Ginger Hotels, which currently has properties in places like Delhi, Guwahati, Agartala, Jamshedpur, Chennai and Bangalore, have an average occupancy of 70-75 per cent.
Source
For owning the properties, the company opt for various models, including acquisition of existing hotels, leasing, management contract or fully developed by Roots Corporation. "If any existing facility fits into Ginger model, then we are open to acquire and convert it. We are looking at this option," Pani said without identifying any possible target. Out of these proposed 55 properties, seven hotels are under construction in Noida, Greater Noida, Chennai, Bangalore, Jaipur, Chandigarh and Amritsar and will be opened in the next 12-15 months, he added. "While some of these hotels are leased ones, some are constructed by us. The total investment will be Rs 60-70 crore for these seven hotels, comprising a total of around 600-700 rooms," Pani said. When asked about the mode of funding its investment, he said it will be done through equity and debt. The company had last year inked a deal with Singapore based private equity firm Omega TC Holdings to raise Rs 150 crore through multiple tranches by selling a minority stake in Roots Corporation. Additionally, Omega acquired Compulsorily Convertible Preference Shares from some existing holders for an aggregate consideration of Rs 70 crore. Ginger Hotels, which currently has properties in places like Delhi, Guwahati, Agartala, Jamshedpur, Chennai and Bangalore, have an average occupancy of 70-75 per cent.
Source