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Royal Orchid heads to Africa, acquires property in Tanzania

Sayoni Bhaduri - Mumbai

Chender Baljee CMD Royal Orchid Hotels

Bangalore-based Royal Orchid Hotels has acquired a 30-acre property in Dar Es Salaam, the capital city of Tanzania. Having bought the property off Multi Hotels, at a price of US$ 2 million, Chender Baljee, chairman and managing director of Royal Orchid Hotels informed that the company is planning to investment an additional US$ 25 million in the establishment which is expected to start operations in 2010. Most of the funding will be envisaged through debt and equity at 1:1.5.

ROHL will be developing the property themselves, and the proposed beach resort will have a contemporary African theme, featuring 150 rooms and cottages, with facilities for a full-fledged spa, swimming pool, lagoon and water sports.

Speaking about the acquisition Baljee said, "We are not looking out to expand aggressively, but if a worthwhile opportunity comes our way, we will not ignore it." The Dar Es Salaam project is one of these opportunities. The city, unlike other African cities, has many key dynamics, like political stability, India-friendly policies as well as scope for tourism and business in the region.

The Dar Es Salaam property will be ROHL's first venture outside India, for which the company is looking at tying-up with international architects in order to design a world-class look for the resort, while at the same time retaining the group's proposition of 'value for money' experiences. Baljee also added that he is not averse to the idea of co-branding to cater to the European tourists.

On whether he is looking at further global acquisitions, Baljee said, "If opportune cases like Dar Es Salaam fall our way, we will definitely take it up. However, we will mostly be looking at East Africa, maybe even South East Asia. We are not looking at any European countries in the near future."

Within the country, Royal Orchid Hotels currently operate nine hotels in Bangalore, Mysore, Pune, Jaipur and Hyderabad targeting the business traveller with the group's four- and five- star hotels.