The company will build a 250-room hotel in Bangalore for $50 million.
Dan Hotels Corp. Ltd. (TASE: DANH) will build a 250-room hotel in Bangalore, on a 2.1-acre lot that it is buying for $15 million. The project is being carried out through wholly-owned subsidiary Dan Hospitality India Private Ltd.
Dan Hotels plans to build a four or five-star hotel adjacent to Bangalore's high-tech park and will have easy access to it. The company estimate the total cost of the project at $50 million, including the cost of the land. The company plans to finance the project from its own resources, with no external financing.
The site is currently occupied by a factory and other buildings, which will be vacated by the owner before payment by Dan Hotels. The company will pay the initial $8 million when the lot is registered in its name with the rest held in trust until all conditions are fulfilled. The company expects construction of the hotel to take four years.
Published by Globes [online], Israel business news - www.globes-online.com - on July 24, 2008
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