Domina Plans three Vedic Sub-Brands

Real estate firm Shristi Infrastructure, which had set up a joint venture
hotel management company, Domina India, with Milan-based Domina Hotel
Group last year, all set to introduce three sub-brands under the umbrella
Vedic label in India.

About Rs 2,400 crore will be invested over five years to set up about
35-50 properties. These will be the two-star Vedic Inn, a mid-scale
Vedic Domina and five-to-seven star resorts – Vedic Resorts and Palaces.
The partners will have equal share in the investment.

All models – joint ventures in Goa, space sharing and management contracts
– will be explored. Domina will also set up a special purpose vehicle
to offload equity to private equity funds, and part-fund its hospitality
venture. Plans are afoot to take the Vedic brand overseas in the next
two-and-a-half years. Sujit Kanoria, managing director, Shristi, told
DNA Money, "First we want to perfect the Vedic brand and then decide
which sub-brand can be taken overseas."

Kanoria is certain that they will not acquire running hotels overseas,
but opt for management contracts of Greenfield properties. "Getting clearances
for owning land is comparatively easy overseas. In India, hoteliers
need a single window clearance for all approvals," he said.

Properties are in the process of coming up in various parts of West
Bengal and Bangladesh border, while negotiations are on in Bangalore,
Pune and Goa.
In case of land acquisition, Shristi is looking for leases, full ownership
and joint development. "We are looking to mitigate our risks and
are open to all business models," said Kanoria. Shristi and Domina
will develop the properties and Domina India will manage them.