The HHI Kolkata, one of the premier hotels in the city, has chalked out an expansion plan with three acquisitions on the cards and a public issue to finance it.
HHI has zeroed in on the hotels. It has also signed the agreement for a hotel in Bangalore. The other two properties would be in Hyderabad and Mumbai.
The cost of each of the acquisitions would be in the region of Rs 30 crore (Rs 300 million) and the properties would be of three-star category.
D K Jaiswal, chairman and managing director HHI Kolkata, said the demand for three-star properties were higher than demand for top-end hotels.
Top-end hotels had become too expensive for many users. For example, in Bangalore, the average room rate was higher than Rs 7,000 and the occupancy in five-star hotels was in the region of 85-90 per cent. Hence it was expected that three-star properties would get a good response.
The acquisitions would be funded through borrowings from banks and financial institutions, and the public issue.
Jaiswal said 40 per cent of the investment would be funded by the public issue.
The company would tap the capital markets next month.
Another five-star property in Goa for Rs 100 crore (Rs 1 billion) was also being planned.
The land had already been acquired. The hotel would be located on the beach and was expected to be completed in a year's time.
Meanwhile, HHI was upgrading its property in Kolkata as well. The entire hotel was being refurbished with an emphasis on banquet facilities.
According to Jaiswal, at present the demand for banquets in the city was much higher than supply.
HHI Kolkata, which had three banquet halls, was adding another three. The total banquet space would be 12,000 sq feet in two months.
Other frills being added were a lounge bar, a revamped coffee shop, a new dining destination and three club floors.
The hotel was eyeing revenues of Rs 8-10 crore (Rs 80-Rs 100 million) from banquets. HHI Kolkata's turnover was Rs 30 crore (Rs 300 million), with an ARR of Rs 2,800-3,000. The hotel had an occupancy rate of 69 per cent.
Jaiswal said, "HHI is also planning to start a hotel management institute in affiliation with an Australian university at its Varanasi property."
The Regency HHI Institute of Hotel Management & Catering Technology would provide students with commercial hotel support simultaneously with cost.
© 2026