The Hindu Business Line : Prajay Engg to diversify into hotels

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Hyderabad Feb. 6 Prajay Engineers Syndicate Ltd, the Hyderabad-based, real estate and property developers, has firmed up a Rs 450-500 crore diversification plan into the hotel and hospitality sector.

The company is keen to create at least 2,000 hotel rooms by 2,010. About 700 would be in the 5-star category and balance in 3-star and budget segments. Hyderabad and Visakhapatnam are the locations for these ventures, according to Mr N. Ravinder Reddy, Director (Operations).

"We are talking to international hotel chains to firm up agreements and are confident of the first tie-up in the first quarter of fiscal 2007-08. We will own the hotel and offer the management to the professional hotel chain. That would be our business model," Mr Reddy told Business Line here on Monday.

Three of the proposed `Celebrity' hotels, including the 5-star one would be in Hyderabad, while the budget hotel (150 rooms), has been planned in Visakhapatnam. In addition, a 140-room expansion in the existing hotel in Shamirpet Celebrity Club complex is underway, he added.

The major 5-star hotel venture is coming up in Kukatpally, where Prajay Engineers has a 40-acre land. The necessary approvals are in the pipeline and should be through in six months. Thereafter work would begin on the hotel which would be located in five acres of the land there, Mr Reddy said.

In the city, the company has acquired the erstwhile Surya theatre complex in Abids.

Here, a 3-star hotel, shopping mall, 3-multiplex screens under the project — Prajay Celebrity Mall is being developed. Similarly, in Dilsuknagar, a 280-room, 3-star hotel, multiplexes etc. have been frozen on the drawing board under the project Prajay Princeton Towers, he said.

The company achieved a turnover of Rs 42.08 crore for the third quarter ended December, 2006 and net profit of Rs 15.22 crore against Rs 19.09 crore income and Rs 5.01 crore profit in the previous comparative quarter.

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