Keeping with its plans of expansion, Hyderabad-based Golkonda Hospitality Services and Resorts Limited, is looking to raise Rs 100 crore during the fourth quarter of this financial year. The company has plans to set up a hotel in Mysore in Karnataka and a three star 100-room hotel in Kakinada in Andhra Pradesh.
The new properties will involve a total investment of Rs 150 crore.
“Of the total investment, around Rs 50 crore will be equity and the rest will be debt. Once we acquire the land by December this year, we will be raising Rs 100 crore debt and then start construction work,” Suresh Reddy, managing director of Golkonda Hospitality, said in a report by Business Standard.
The company which operates hotels under the Golkonda brand, is in talks with financial institutions and banks for the debt money. Initially, the investment would be in the form of debt and subsequently, the dilution of equity would happen, Reddy added.
Inaugurating ‘Angsana Spa’, a sister concern of Thailand-based Banyan Tree Spa, at the Golkonda resort near Gandipet lake in the city on Friday, Reddy said, “The company is also planning to expand the resort by adding more villas, a convention centre and a 100-ft tall tower restaurant in December this year.”
The convention centre, spread across 40,000 sq ft, will come up with an investment of Rs 4.5 crore. It will have a capacity to house 1,500-2,000 people. For t