Chennai:
Kotak
Mahindra Realty Fund has invested a total of Rs34 crore
in two hotel chains. The fund has invested Rs32 crore
in Lemon Tree Hotels and Rs2 crore in Red Fox Hotels,
both belonging to the same group.
 The Lemon Tree
chain operates in the mid price segment (Rs3,000-5,000)
per room night caters to the business and leisure travelers.
The first two hotels in Gurgaon are already operating
at over 90-per cent year round occupancy.
Two
more hotels will be opened in Pune and Goa this year.
In addition seven more hotels with a total room capacity
of 1,300 are under development. When completed Lemon Tree
Hotel chain will have properties in Delhi, Mumbai, Hyderabad
and Chennai.
On
the other hand the Red Fox is a limited service budget
hotel chain charing Rs800-2,000 per room night.
According
to Kotak Mahindra Realty's CEO S Sriniwasan, the fund
believes in the need for mid market and economy hotels.
It
may be recalled earlier this month private equity firm
Warburg Pincus had invested Rs210 crore in Lemon Tree
chain and Rs70 crore in the Red Fox chain.
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