New Delhi: U Hostels, an alternative and personalised accommodations provider, has plans to invest up to Rs 300 crore for setting up 10-12 premium hostels for working class in all metro cities of the country over the next two-three years.
“We plan to invest up to Rs 300 crore to set up 10-12 premium hostels in metro cities in India. These hostels would be premium properties with 3 or 4 star facilities for working communities. This segment is currently untouched in India…at present for working class people wanting stay long term in a city, there are very limited options,” U Hostels Managing Director Sudhir Sinha told PTI.
U Hostels, a joint initiative of hotelier Sinha and Franchise India’s Gaurav Marya, is looking at setting up 50-80 hostels, with about 100 rooms reach, in the next seven years. These hostels will come up in metro cities such as Delhi NCR, Mumbai, Pune, Hyderabad, Bengaluru and Chennai.
“Our first two properties would come up in Gurugram and Pune in the next six-eight months. We have invested about 80- 100 crore investment for these two properties,” he said. When asked if the company will raise funds to expand its business, Sinha said: “We would be looking at raising funds down the line, but currently it is self funded. After our first two properties become operational, we will get valuations done and raise funds.”
The company has tied up with brand such as Gym 99, UClean, Entrepreneur USA for services to be provided to the guests.