Pride to set up 250-room Mumbai hotel

Pride Hotels, part of the SP Jain group of companies, is planning to set up a 250-key hotel in Mumbai to be operational by 2011.

It has been assigned a floor space index (FSI) of 3.5 for this project which will entail an investment of Rs 200 crore. The company, which launched three hotels in Chennai, Bangalore and Jaipur this year, may get to add additional 100 keys to the proposed Mumbai hotel.

The hospitality company also plans to raise Rs 175-200 crore next year through an initial public offering, chairman S P Jain said.

It has planned a capital expenditure of Rs 800 crore to expand capacity to 3,000 rooms by 2015 from 1,000 now.

The capex will be funded through IPO proceeds, debt, private equity and internal accruals, Jain said. “We will launch an IPO next year,” he said. The company has already raised Rs 55 crore via private placement of stake, and will raise another Rs 45 crore through this route. It has tied up for Rs 100 crore debt from Citibank and Kotak Mahindra Bank. (With NW18)