News: Viceroy Hotels on Rs 800-cr expansion spree
(TNN 22/04/2006) Hyderabad - Hyderabad-based Viceroy Hotels has embarked on a Rs 800-crore expansion plan to set up hotels in Chennai, Bangalore, Vizag and add one more hotel in Hyderabad. The total investment for the expansion plan will be raised through a combination of debt and equity.
“About one-third of the funds would be raised through equity and the rest via debt,” Viceroy Hotels vice-president Ravi Krishnan told ET. The Anil Dhirubhai Ambani Enterprise (ADAE) has recently picked up about 6% stake in the company while investor Rakesh Jhunjhunwala has picked up about 13.5%. Mr Jhunjhunwala is also on the company’s board of directors. A couple of London-based firms have also picked up stake in the company, he said.
On April 10 , Viceroy Hotels had approved a proposal to offer 40,25,000 equity shares of Rs 10 each at a premium of Rs 90 per share to promoters and other strategic investors. It had also cleared the issue of 74,75,000 warrants convertible into equivalent equity shares of Rs 10 each at a premium of Rs 90 per share within 18 months from the date of allotment to promoters and other strategic investors, according to information with the BSE.
Viceroy would soon be known as Marriott Hyderabad as a result of its management tie-up with the latter. Marriott has been managing the Viceroy Hotel since January 15. “Philip Spencer has taken over as the general manager and has been running the hotel with his team,” says Mr Krishnan.
Viceroy has been in a tie-up with Marriott since 2002 and its first project was the renovation of Viceroy Hotel in Hyderabad. The hotel has invested Rs 80 crore on renovation and is also setting up a budget category hotel called Courtyard, a Marriot Group brand. The hotel group has also taken up five and half acres in Chennai.
“About one-third of the funds would be raised through equity and the rest via debt,” Viceroy Hotels vice-president Ravi Krishnan told ET. The Anil Dhirubhai Ambani Enterprise (ADAE) has recently picked up about 6% stake in the company while investor Rakesh Jhunjhunwala has picked up about 13.5%. Mr Jhunjhunwala is also on the company’s board of directors. A couple of London-based firms have also picked up stake in the company, he said.
On April 10 , Viceroy Hotels had approved a proposal to offer 40,25,000 equity shares of Rs 10 each at a premium of Rs 90 per share to promoters and other strategic investors. It had also cleared the issue of 74,75,000 warrants convertible into equivalent equity shares of Rs 10 each at a premium of Rs 90 per share within 18 months from the date of allotment to promoters and other strategic investors, according to information with the BSE.
Viceroy would soon be known as Marriott Hyderabad as a result of its management tie-up with the latter. Marriott has been managing the Viceroy Hotel since January 15. “Philip Spencer has taken over as the general manager and has been running the hotel with his team,” says Mr Krishnan.
Viceroy has been in a tie-up with Marriott since 2002 and its first project was the renovation of Viceroy Hotel in Hyderabad. The hotel has invested Rs 80 crore on renovation and is also setting up a budget category hotel called Courtyard, a Marriot Group brand. The hotel group has also taken up five and half acres in Chennai.
posted by InCar Group Press Room at 13:13
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