Pride Hotel gears up for expansion of Rs. 340 crores

Plans an IPO in next quarter to meet its requirement of expansion plan; 11.1% stake of Kotak India Real Estate Fund in existing capital of Pride Hotels Ltd.

Hyderabad, 26th December 07. The Pride Hotels announced its plan of an IPO to meet its expansion plan in the first quarter of 2008. The Pride Hotels are present in Pune, Nagpur, Ahmedabad and Chennai.

Expansion plans: Pride Hotels announced today, that it has received a significant investment from Kotak India Real Estate Fund towards part financing of its

Rs. 340 crore expansion-cum-renovation plan.

The Group aims to utilize the funds towards setting up new hotels in Mumbai, Goa, Bangalore and Alibaug. Pride Hotels has recently acquired 4.5 acres land at Alibaug, where it proposes to set up a resort cum spa. The company has also acquired property at Mumbai for construction of 200 rooms Hotel. The Bangalore Hotel is nearly on completion which will open by June 2008.

The Pride Hotel now offers total 430 rooms in Nagpur, Ahmedabad, Pune and Chennai and post expansion it will offer 1126 rooms in the 5 star categories. Currently The Pride Hotels has 11 food outlets which include restaurants, coffee shops and bars and 19 banquet hall and conference rooms in their properties. Pride hotel has a growth of 77% on total earnings between the year 2006-2007 in comparison to 48% growth in the year 2005-2006.

Speaking on the occasion, Mr. S. P. Jain, Chairman of The Pride Group of Hotels said that, 'With this key investment from the Kotak realty fund and Mauritius based primary fund; we are now close to finalising sources of funds for our expansion plans. We have lucrative business segment markets of the country, viz. Mumbai, Goa, Bangalore and Alibaug.

Given the growth rates in the in-bound business travel sector, Mr. Jain further added that, in India we have total 1,10,000 rooms in star category of Hotel where as the demand is more then 2,00,000 rooms as per the survey by FHRAI and Department of Tourism and clearly there is high shortage of 90,000 rooms. Therefore the Department of Tourism has offered incentive scheme for construction of 1 to 3 star Hotels.

Mr. Satyen Jain, CEO - The Pride Group of Hotels further elaborated on the Group's future plans and said that,' While 5 Star Hotels in India are at par with global competitors, there is a near absence of internationally acceptable 3 Star and 4 Star Hotels. This gap will now be filled by the Pride Biznotel chain - moderately priced, upscale, full service, business and leisure hotels - the perfect choice for today's value conscious traveler.'

The Pride Hotel Management team comprises of Mr. Arun Nayar - Director Operations, who has worked with Peninsula Hotel in Dubai and Atria in Bangalore. Mr. Vivek Pathiyan - Vice President - Operations, has worked with some of the finest chains like Marriott, Leela, Ramada and The Orchid, have brought their rich experience and are instrumental in working towards the vision of the Group.

The Pride Biznotel

The Pride Biznotel will have about 60 to 125 smartly furnished rooms with facilities designed for a comfortable and secure stay. Business travelers will find a complete infrastructure available for them, including conference and interview rooms. Those seeking to unwind will find everything from a Health Club to various recreational facilities.

The facilities are geared to match the needs of discerning patrons. The comfortable environment introduces our guests to a luxurious life-style, right from the moment of check-in till their stay. Service at Pride Hotel; Biznotel is unparalled in standards of sophistication and convenience.

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