Phoenix plans Zuri brand of hotels

Bangalore: Bangalore-based Rs 170 crore Phoenix Group Global, with interests in hospitality, floriculture and real estate, is planning to launch its own brand of luxury hotels and resorts in India and abroad under the brand name ‘Zuri’.

The first hotel under the Zuri brand name will be built in Whitefield, Bangalore for which the company will invest Rs 200 crore. The five-star hotel will be a 162 room unit which will be ready by 2009. 70 per cent of the investment will be funded through debt from public sector banks and rest from equity which will be availed from its consortium of investors based in the middle-east.

Until now, the company operated under franchise agreement with Carlson Hospitality through the Radisson brand of hotels and resorts where it operates Radisson Plaza Resort & Spa, Kumarakom (Kerala) and Radisson White Sands Resort, Goa. The contract with Carlson is due for review next year, after which Phoenix will take a call on its future dealings with Carlson.

After starting its own chain with the Whitefield hotel, the company is looking at a similar venture at Devanahalli in Bangalore for which it has procured 5.5 acres of land.

Mysore, Mumbai, Chennai, Delhi, Vishakhapatnam and Ahmedabad are some of the cities where the company is planning to procure land for setting up the hotels. It is also looking to expand its footprint abroad with hotels in the US, UK and Europe.

“We are planning to undertake feasibility studies at various tier II cities in India where we can expand our network of Zuri luxury hotels and resorts. We are also exploring Kenya and Nairobi to expand our international presence,” said Aditya Kamani, director- Phoenix Group Global.

Investment for the upcoming projects would depend on case-to-basis, said Kamani. Funding for the expansion plans would be through debt and equity.

Depending on market conditions, the company is thinking of coming out with an Initial Public Offering (IPO) in the last quarter of 2009.