VBC, My Home, EIH plan Rs 600 cr 5-star hotel

"Trident Hilton Hyderabad" in Madhapur:
VBC, My Home, EIH plan Rs 600 cr 5-star hotel

We have recently entered into a lease agreement with the Andhra Pradesh government for a long lease period of 66 years and paid an upfront fee of Rs18 crore for the 4.5 acre land,” Rama Rao told Mint, adding that the company has to offer 3% of the hotel revenues to the government under the agreement.

A special purpose vehicle titled Golden Jubilee Hotels Ltd was incorporated to execute the 20-storied hotel project and civil works were commenced last week. The hotel project with 500 suites and 140 service apartments is estimated to involve an investment of Rs 600 crore.
It would be executed through debt and equity components of 60% and 40%, respectively. The company has already tied-up the debt with banks that include State Bank of Hyderabad, Canara Bank and Union Bank of India.

Rama Rao said VBC group would hold an equity stake of 42%, My Home group 42%, while East India Hotels would have the balance 16% equity.