Gammon India planning to invest Rs100 to 150 crore in hotels
28 Sep 2007
Construction
major Gammon India will invest between Rs100 to Rs150 crore ($25 to 38 million)
in the hospitality business. Gammon managing director Pervez Umrigar told CNBC-TV18
in an interview that the first hotel property is expected to start operating by
June 2009.
The company is said to be looking at 38 properties to set
up Super 8 and Days Inn franchises by 2011. It signed the agreement last month.
All of them are likely to be in the budget business segment, and Gammon expects
the commissioning phase to last about 15 to 18 months.
Gammon
says the total capex should come to Rs350 to 400 crore ($88 to 101 million), which
means an equity base of around Rs100 to 150 crore, which the company plans to
generate from internal revenues. It has not decided whether it will list the new
entity and have an IPO.
