Royal Orchid Hotels to raise up to Rs 150 crore to fund new projects

Bangalore-based Royal Orchid Hotels will raise up to Rs 150 crore to fund its new projects. The funds will be raised through a mix of debt and equity. They will be used to double Royal Orchid Hotels’ total room capacity to 2,000 by the end of the next fiscal, according to a company official. The company’s board has approved a proposal to raise up to Rs 150 crore of funds through the issue of non-convertible debentures and/or preferential convertible share warrants, or other financial instruments, including QIP. Royal Orchids has a number of new projects at various stages of construction and the money raised would be used to fund them. “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,” the official said. 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,” he added. The fund-raising initiative is subject to the approval of shareholders at the Annual General Meeting scheduled to be held on September 24, the company said in a filing to the Bombay Stock Exchange. Source: http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=9895&cat_id=1 Filed under: Builders/ Developers , Hyderabad , New projects Tagged: Hospet , Hyderabad , Jaipur , Mumbai , Mussoorie , Royal Orchids , Shimoga

[via India Real Estate Tracker]