Indian boutique hotel company Shervani Hospitalities reveals expansion plans

India: Shervani Hospitalities will invest Rs 120 crore (around £14.7 million) in launching three new properties as part of its plan to open up to seven new hotels by 2017.

India: Shervani Hospitalities has announced it will invest Rs 120 crore (around £14.7 million) in launching three new properties as part of its plan to open up to seven new hotels across India by 2017.

Managing director S M Shervani said: “We plan to open up to seven hotels by 2017 as we look to expand our presence in new locations.”

Of the seven properties, three hotels will be owned by the company while rest will be under management contracts, he added.

“The investments on the three hotels to be owned by the company will be around Rs 120 crore,” Shervani, who is also the President of Federation of Hotel & Restaurant Associations of India (FHRAI), said, adding that the funding will be admixture of debt and equity.

“However, we will keep the level of debt in check as this industry is very capital intensive and it takes a long time for any property to be profitable,” he said.

The new hotels will be in locations including Goa, Corbett, Indore and Kanpur, among others.

Shervani Hospitalities currently runs three hotels in the mid-tier segment.

www.shervanihotels.com

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