Bangalore-based Royal Orchid Hotels Liimited (ROHL) has increased its stake to 74% in Powai-based Amartara Hospitality Private Limited by acquiring an additonal 21% stake.

Last year in November, ROHL had acquired 53% in Amartara Hospitality for Rs.18.04 crore to implement its 4-star hotel project.

The acquisition will result in the development of a 250 room four-star hotel located in Powai, Mumbai at a cost of around Rs.125 crore, where Amartara has 50,000 square feet land parcel.

Royal Orchid, which will fund the Amartara buy through internal accruals, is likely to start work at the site in a couple of months and proposed hotel will be branded as Royal Orchid Central.

Transaction Reference: DNA

Bangalore based Royal Orchid Hotels Ltd (ROHL) operates and manages a chain of hotels under the brand “Royal Orchid” in India.

The Powai hotel will be Royal Orchid's first owned and managed property in Mumbai. Its only other property currently is a management contract in Navi Mumbai — a 67-room Royal Orchid Central Grazia.

Royal Orchid is also in the final stages of acquiring a site in Shimla, where it is looking at a greenfield, four-star resort development under the Royal Orchid Resorts brand.

Royal Orchid’s current portfolio comprises 14 hotels with an inventory of 1,200 guest rooms. The company is looking to add over 700 rooms this fiscal spread over five new developments, including 140 keys in Hospet, 60 keys in Mussoorie, and 108 keys in Shimoga. Also, a hotel each in Hyderabad (230 rooms) and Jaipur (160 rooms) are in the final stages and will open this year.

It is planning to double its room base to 2,000 rooms in the next three to four years from its existing around 1200 rooms.

In December 2007, Royal Orchid acquired a 30-acre beachfront property in Dar es Salaam (capital of Tanzania) for Rs 8 Cr. It plans to set-up a 150-room resort in the country by March 2013.

On a consolidated basis, Royal Orchid Hotels' net profit surged 531.2% to Rs 1.01 crore on 21% increase in net sales to Rs 31.32 crore in Q1 June 2010 over Q1 June 2009.

In the hospitality space, recently Asian Hotels (West) Limited acquired 16.38% stake in Inovoa Hotels and Resorts Ltd. Asian Hotels will aquire an additional 34.11% in Inovoa during the current fiscal and Mirah Group bought 'Rajdhani Thali' which is run by Encore Hotels Pvt Ltd.

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