Realty firm Parsvnath Developers said it has entered into a joint venture with Bangalore-based Royal Orchid Hotels to develop 10 hotels in the country with an investment of Rs 500 crore over the next five years.
The joint venture company would operate under the name of Parsvnath Royal Orchid Hotels, wherein Parsvnath Hotels Ltd (PHL) would hold 70 per cent and the remaining would be held by Royal Orchid, the company said in a release.
There would be at least 1,000 rooms to be built under this JV, the company said, adding that four hotels would be 5-star and four would be 4-star hotels, while the remaining would be 3-star hotels, resorts and serviced apartments.
"With this agreement, we look forward to a fruitful relationship with an established player in the hotel industry. The agreement would facilitate our dream to provide finest level of accommodation and hospitality experience in business and leisure segment," Parsvnath Chairman Pradeep Jain said.
"This partnership would help us take advantage of Parsvnaths land bank for hotels and expand our brands reach considerably faster," Royal Orchid Hotels Chairman and Managing Director Chender Baljee said.
Earlier this month, Parsvnath tied up with diversified conglomerate ITC for managing hotel properties, which it would develop at a cost of Rs 2,500 crore in the next 3-5 years.
Parsvnath has presence in 17 states with projects in all verticals of real estate industry. It has 209.75 million sq ft of developable area.
Royal Orchid currently has hotels in Bangalore, Mysore, Pune, Jaipur and Hyderabad and has also forayed in Tanzania.
Shares of Parsvnath were trading at Rs 274.45, down 2.80 per cent in the afternoon trade on the Bombay Stock Exchange.