Bengaluru-based Royal Orchid Hotels is all set to expand its footprint by setting up new properties and to fund its new projects, the company will raise up to Rs 150 crore. According to a company official, the funds raised through a mix of debt and equity will be used to double Royal Orchid Hotels’ total room capacity to 2,000 by the end of the next fiscal.
"We have projects underway in Jaipur, Hyderabad, Hospet and Shimoga (Karnataka), Mumbai and Mussoorie. Subject to shareholders' approval, the money will be used to fund the construction of new properties. At present, the company has a total of 1,000 rooms in 13 hotels operational in seven cities across India. In the next 18 months, the target is to add an additional 1,000 rooms," an official of Royal Orchid Hotel said.
The expansion plans come in wake of increased domestic tourism which has largely benefitted the hospitality sector. The additional room capacity is expected to raise the company’s revenue by 30% in the next 3 years. Royal Orchid, the largest hotel chain in Bangalore currently has properties in key cities like Bangalore, Jaipur, Pune, Goa, Mysore, Navi Mumbai and Ahmedabad.
