Brigade Group to raise Rs 1000cr for luxury hotels' launch

Brigade Group is spinning big dreams for its hospitality arm Brigade Hospitality. After being in the service apartments and clubs space till now, Brigade is now tapping luxury hotels and resorts in South India. It plans to raise Rs 1,000 crore in the next six months. CNBC-TV18's Vineetha Athrey reports.

Below is a verbatim transcript of her comments on CNBC-TV18. Also watch the accompanying video.

Brigade Hospitality, which is a 100% subsidiary of the Bangalore based Brigade Group, is planning six luxury resorts and hotel properties across South India. This is set to launch by 2013. Brigade has already appointed JP Morgan as the banker for the exercise of raising about Rs 1,000 crore over the next six months through private equity. Brigade has started talking to six of the short listed PE firms for raising this money. It is targeting consolidated revenue of Rs 500 crore in the year 2014. This will be a year after the hotels become operational from Brigade Hospitality alone. Brigade Hospitality's current turnover is around Rs 30 crore.

On the project:

There will be two Sheratons--one in Bangalore and other in Mysore. One Holiday Inn and two resorts with Banyan Tree and Angsana in Chikmagalur and a luxury island resort on Kochi. Investments figures are Rs 200 crore for the Bangalore Sheraton. It will have 230 rooms and will open in August 2010. Brigade intends to position Mysore Sheraton as a wedding and banquet destination with 220 rooms and investment of Rs 180 crore. It plans to open in 2013.

Along with it, Holiday Inn will also open in 2013 with 219 rooms and investment of Rs 120 crore. Apart from this, Brigade is also planning business hotels in Chennai and Bangalore.