Mumbai : With an aim to expand its Indian hospitality portfolio, Mumbai-based KBJ Hotels is planning to come up with an Initial Public Offering (IPO) by 2012. The company plans to raise Rs 1,000 crore through the IPO. These funds will be directed to develop 25 hotels by the company.

As reported earlier, the company is investing Rs 1,000 crore to develop ten hotels across the country in two phases. These hotels are expected to be operational by 2012. The company has already secured funds for this development. While it will raise Rs 600 crore through bank funds, Rs 400 crore will be generated internally by the company. "We are in the process of securing USD 40 million from an international private equity fund," informed Mohit Kamboj, Managing Director of KBJ Hotels.

The hotels under development in phase one are: KBJ Grand in Varanasi - 133 rooms to be operational by August 2011; KBJ La Casa Bella in Goa - 111 rooms to be operational by September 2011; KBJ Five Colours in Bodh Gaya - 75 rooms to be operational by October 2011; KBJ Stupas in Kushinagar - 75 rooms to be operational by December 2011 and KBJ Touchstone in Khajuraho - 75 rooms.

Besides, Greenfield hotel development, the company also plans to build its portfolio through the management route for Absolute KBJ Hotel Services India. Absolute KBJ Hotel Services India is a Joint Venture between KBJ Group, Thailand-based Absolute Hotel Services and National Capital Management Pvt. Ltd.

Jonathan Wigley, CEO, Absolute Hotel Services said, "We aim to announce a minimum of 20 properties under the management route this year and are already under active negotiations for 18 properties across the country. We recently closed a deal in Pune for a hotel with 114 keys under the Eastin brand and are in final stages of negotiations for a property in Mumbai as well."