Our Bureau

Mumbai , March 23

IDFC Private Equity's India Development Fund has invested Rs 50 crore in Chalet Hotels Ltd for a 10-per cent stake in the company.

Chalet Hotels, a part of K Raheja Corp, owns the Lakeside Chalet Marriott Executive Service Apartments and the Renaissance Mumbai Hotel and Convention Centre here.

The real estate developer plans to invest the funds in new properties being planned across the country. It had earlier raised equity from HDFC, according to an official statement.

This is the fifth investment by IDFC Pvt Equity, the private equity arm of Infrastructure Development Finance Company, which manages the India Development Fund, the largest domestic infrastructure private equity fund in the country.

This is also the equity fund's second investment in the hotel sector after its recent investment in Hotel Leelaventure Ltd.

Following the investment, Mr Luis Miranda, President and CEO, IDFC Pvt Equity, will join the board of Chalet Hotels.

Mr Miranda told Business Line that the hospitality sector held out tremendous scope for investments thanks to the increase in tourism, particularly, business tourism.

He added that there was a shortage of hotel rooms at the top-end of the hospitality sector, especially when compared with that abroad.

The fund would also consider projects in a number of other sectors such as airports and ports.

Since opening shop about a year ago, the equity fund has made investments of Rs 330 crore in five infrastructure projects.

An official statement, quoting Mr Neel Raheja, Managing Director, Chalet Hotels, said: "We look for partners who are committed to long-term relationships and who will support our growth. We believe that IDFC Pvt Equity will help us achieve our growth targets and create value in the hotel sector."

IDFC spent over a year with the team at K Raheja Corp and Chalet Hotels before making the decision on investment. SSKI Corporate Finance assisted with the transaction.

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