HHI Group Plans IPO To Fund Expansion

Joy Roy Choudhury - Kolkata

The Kolkata-based HHI Group of Hotels is planning to launch an initial public offer (IPO) soon. Funds from the IPO will be utilised in setting up seven-eight ‘no-frills’ budget hotels in upcoming non-metro cities of the country.

Speaking exclusively to Express Hotelier & Caterer, D K Jaiswal, chairman and managing director, HHI Group of Hotels, said, “We are currently in the process of working out the modalities of the IPO. Though we are yet to take a final decision on the size of the IPO, it is likely to be around Rs 300 crore.”

The group is on an expansion mode and in its first phase the company is setting up two hotels, one in Goa and Bangalore. In the second phase, the company proposes to set up seven to eight ‘no-frills’ business hotels in upcoming cities of the country. “We are looking at places like Ahmedabad, Pune, Raipur, Aurangabad, Jamshedpur, and Siliguri in West Bengal. A final decision on the locations will be taken shortly, “ Jaiswal further added.

The ‘no-frill’ hotels will have one or two restaurants and will do away with high-investment frills like spas, banquet halls and swimming pools, these hotels will basically target the business travellers.