Newstrack

Puravankara in talks with Accor, Marriott for hospitality ventures

EH Staff - Bangalore

Puravankara Projects, a Bangalore-based real estate company, is in talks with global hotel majors including Accor and Marriott to set up hotels and serviced apartments in Bangalore, Chennai and Kochi. Details regarding the size of the deal are not known.

When contacted, Ravi Puravankara, chairman, Puravankara Projects, declined to give a direct comment on the development. However, he confirmed that the company currently has plans to diversify into hospitality segment and would set up hotels and serviced apartments in south Indian cities in association with big brands in the industry. "Yes, we are in talks with some of the very big hotel chains of the world but I cannot disclose the names now," Puravankara stated.

A majority of Bangalore-based real estate developers are now planning foray into the hospitality segment mainly to diversify their business and to leverage on the scarcity of hotel rooms in India. According to sources, in Bangalore the company plans to set up a luxury and a budget hotel comprising nearly 570 rooms in the city. In Chennai and Kochi, the company plans to develop serviced apartments besides setting up hotels.

Puravankara Projects, which already has a project specific joint venture with Singapore-based Keppel Land, also plans to hit the capital market with their initial public offering (IPO) in April this year. The company plans to raise nearly Rs 1,300 crore and would divest nearly 10 per cent of the promoters' stake through the offer. "We would come out with the IPO probably in March-April this year," Ravi Ramu, director, Puravankara Projects said. The fund is likely to be used for financing the company's future expansion plans that include setting up real estate projects abroad.

The company would set up a residential project in Colombo in Sri Lanka and has plans to enter Middle East and European markets soon. "Our primary focus would be to establish a presence across all the Indian cities. Simultaneously we are also looking at opportunities abroad in Sri Lanka, Middle East and Europe," Puravankara said. The company currently has a land bank of nearly 73.35 million sq ft of developable area and is in the midst of acquiring lands abroad for its future projects.