Assotech to invest R600 crore in hospitality biz

Eyeing hospitality and healthcare as new growth frontiers, real estate developer Assotech Ltd on Wednesday announced an investment of R600 crore to develop around 2,000 hotel rooms over the next five years. HT reports. Diversifying to grow

Updated on: Sep 1, 2010, 23:13:30 IST

Hindustan Times | By HT Correspondent, New Delhi

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Eyeing hospitality and healthcare as new growth frontiers, real estate developer Assotech Ltd on Wednesday announced an investment of R600 crore to develop around 2,000 hotel rooms over the next five years. The company is also developing a 400-bed hospital at Patna that is expected to be completed by 2012 end.

"We are already developing luxury hotels at Rudrapur, Haridwar and Bhubaneswar, while one more is being planned at Rajgir. These hotels are being launched under the Radisson brand in association with Carlson," said Sanjeev Srivastva, MD, Assotech. The company plans to invest around R250 crore to develop these hotels. "We are already in possession of the land."

The company has also earmarked an investment of around R150 crore for the development of a 400-bed multispecialty hospital at Patna. "We also plan to open similar hospitals at Gwalior and Ghaziabad." The company has also made doctors stakeholders in hospitals planned by it. "We intend to launch our own hospital brand very soon."

The developer will raise money through a mix of internal accruals, debt and private equity, he said.

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