VCCircle

Indian hotel industry is starved for funds to expand. Leading private equity players are looking at grabbing a share of this fast growing services industry. The Economic Times has reported that ICICI Venture Fund has bought 26 per cent in Hyderabad based Viceroy Hotels for about Rs 100 crore. India Advantage Fund of ICICI Venture has picked up the stake at Rs 87 a share. In another story, The Economic Times says:

It is reliably learnt that big funds from across the world such as Blackstone, ChrysCapital and Henderson seem to be eager to tap this space. Private equity funds are learnt to have raised more than $500m by June ’05 to invest in India compared with $260m in ’03. Major global funds are believed to be in talks with the Hyderabad-based Viceroy Hotels to pick up equity to gain a foothold in the rapidly expanding sector.