Newstrack

Zoom Developers zooms in the budget segment

To invest Rs 380 crores in IRCTC Rail Ratna Hotels

Sanjeev Bhar - New Delhi

Mumbai-based real estate company Zoom Developers has zeroed in on the hospitality sector with its foray into budget hotels. The company recently won the bid for twelve properties of the Indian Railway Catering and Tourism Corporation (IRCTC) - the Rail Ratna Hotels.

Speaking to Express Hospitality, Rumneek Bawa, president and CEO of the company said, "We will establish budget hotels in Bhatinda, Katra, Amritsar, Indore, Raipur, Cochin, Pondicherry, Guwahati, Jaipur, Dalhousie, Dhanbad, Bhilai and Kanha. We are looking to develop the properties in a joint venture with land owners wherever applicable."

The company estimates that the market could absorb at least 60,000 rooms in this segment. "The estimated cost of each hotel could vary between Rs 20-30 crores. We will raise funds through internal accruals as well as the equity route," informed Bawa.

The company is also in negotiations with international hospitality majors, though no final decision has been reached. It is also speaking to domestic hotel management groups like the Mumbai-based Orchid Hotels, the Bangalore-based Royal Orchid Hotels and the Delhi-based Toshali group.

Speaking of the IRCTC projects, Bawa said, "Zoom Developers will develop 12 budget properties for IRCTC. The proposed projects would cost between Rs 360-380 crores and will be on a long-term lease of 30-years." The company has won bids for developing hotels in Chandigarh, Udaipur, Jodhpur, Bikaner, Agra, Darjeeling, New Jalpaiguri, Bhopal, Nagpur, Pune, Tirupati and Bhubaneshwar.

The company has got the go ahead from the State Bank of India and is funding the project with a loan of Rs 250 crores. Tightlipped about timelines, Bawa said, "Every detail has been etched out and the design blueprint is ready