Arun Mucchala Group announces to fund Rs 500 crore into the hospitality business through external borrowing and from their own businesses. The real estate group has business interests in property development, cement and entertainment parks.
The chairman of the group said that that the funds will be used for two properties – one in Thane and another in Lonavala. The properties will be completely set up by 2017.
The group just recently opened its maiden Rs 100-crore four-star hotel, which is currently managed by Byke Hospitality. The property that comprised of 120 rooms was considered as an additional feature to their water theme park that they built four years ago. Arun Mucchala said that to them, the 120 rooms seemed a little too much but at the present, it appears just enough for the Thane market.
The present hotel is planned to run at 50 to 60 percent, rising to 80 percent, the head of the real estate group said. The increase in the number of call centers and technology companies in Thane have given their property more avenues. Because of the improving area of Thane, the demand for places to stay has improved. The group has also planned to construct service studio apartments in Thane and another premium property to their present hotel. In Lonavala, along Mumbai-Pune highway, the group is starting construction of their 100-villa project that will include a wellness center and a spa.
The group said further that after its expansion in Maharashtra, it will also look forward to adding a hotel chain to Gujarat. These properties will usually be three to four star hotels. They also plan to collaborate with its existing bankers, Axis Bank and ICICI Bank. They also mentioned of a possibility to raise international funding for other planned projects.