KBJ Group plans to raise Rs 2,000cr through various routes to enter the hospitality industry through its hospitality arm KBJ Hotel Ltd established in 2009. The Group plans to set up 25 hotels in 3 and 5 star categories across the country by 2012.
The projects will be financed via bank loans of Rs 600cr and internal accruals and PE funding of Rs 400cr. The company plans to raise an additional Rs 1,000cr through an IPO in 2012.
The company will invest Rs 500cr in the first phase of expansion. It plans to build 5 star hotels in Varanasi and Goa and 3 star hotels in Bodhgaya, Kushinagar and Khajuraho. In the second phase, the company will invest Rs 500cr to set up hotel properties at Rudrapur, Ludhiana, Amritsar, Jaipur, Surat and Aurangabad.
Last month, the company had formed a JV with Absolute Hotel Services and National Capital Management Pvt Ltd to "support Absolute's expansions in India."
The shareholding of KBJ, Absolute Hotel and National Capital Management in the new entity Absolute KBJ Hotel Services India Ltd will be 20%, 60% and 20% respectively.
The company will operate properties under five brands: U Hotels & Resorts, Eastin Hotels, and Eastin Residences (owned by Absolute Hotel Services), and KBJ Hotels and KBJ Residences (owned by KBJ Hotel Ltd).
The KBJ Group is a family-owned company built by 3 generations of the Kamboj family. The group has been in the gold jewellery business for about 5 decades. The heir of the family and present promoter of the KBJ Group is Mohit Kamboj. The company has diversified into real estate, aviation and hospitality sectors.
A couple of PE investments have been made in the hospitality space in India in the recent past. Last month, JP Morgan India Mauritius invested $15mn in Viceroy Hotels Ltd for 49% stake. In October, Daman Hospitality Ltd received $7.56mn funding Madison India Real Estate Fund.
In May 2009, Asiana Hotels and Resorts Ltd had raised $32.5mn from Australia's Banyan Fund Management.
Transaction Reference: ET
KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
| 18/02/10 |
KBJ Hotel-Looking for PE |
Private Equity |
|
432.00 |
| Date | Type | Buyer | Target | Size ($mn) | State |
| 01/02/12 |
Private Equity |
|
CGH Earth |
50.49 |
Planned |
| 30/01/12 |
IPO / Offerings |
|
Pride Hotels Limited |
25.30 |
Called Off |
| 30/01/12 |
M&A |
Sahara Group |
Marriott Hotels Inc |
1175.47 |
Planned |
| 27/01/12 |
M&A |
Omega TC Holdings Pte Limited |
Roots Corporation Limited (Ginger Hotels) |
- |
Completed |
Company |
| Name | Promoters | Office | Competitor | Website |
| KBJ Hotel Limited |
Kamboj Family |
5th Floor, 66/66A KBJ Plaza, Zaveri Bazaar |
Viceroy Hotels Limited
Beacon Hotels and Resorts
Indian Hotels Company Limited |
www.kbjgroup.com |
