OP Munjal-promoted Hero Group on Monday said it will foray into India's hospitality sector and plans to develop a five star hotel in Haryana. The group, which is mainly into auto components and bicycle business, has already acquired 3.9 acre land to develop a 280-room property in Gurgaon.
"We have acquired the land through bidding done by a bank...the skeleton of the building already exists and it will be further developed into a five star property with around 280 rooms," Hero Group spokesperson said.
He said the group is currently holding talks with several international hospitality brands, including Four Season, Conrad and JW Marriot for management contract.
"The property is likely to be ready in the next twelve months from now," he added.
He, however, declined to provide details of the investments made by the group in the project.
Commenting on the group's new initiative, Hero Motors Managing Director Pankaj Munjal said: "Looking at the huge growth potential and dynamic social changes, we see a room for a high-end hotel in this part of the NCR."
The group has plans for a bigger play in the hospitality market of India."This is just a beginning for us, the sector is growing and going forward we would like to grow as the sector achieves new heights...we see the opportunity for growth in tourism is extremely high in India and this is the right time for us to venture into the sector," Mr. Munjal said in a statement.
The average growth rate in tourism in India over the past five years has been over nine per cent and 5.6 million foreign tourists arrived in India last year, he added.
OP Munjal-promoted Hero Group owns Hero Cycles, Hero Motors, Munjal Kiriu and ZF-Hero chassis.
"The group is debt free with over Rs 1,000 crore free cash on balance sheet," the statement said.