Mumbai (PTI): Real estate developer Peninsula Land along with clothing label manufacturer Arrow Webtex will enter into the hospitality business by forming a special purpose vehicle with an initial equity infusion of about Rs 100 crore.

The special purpose vehicle (SPV) would be created, which would be held 50-50 by both the joint venture (JV) partners to build hotels. In the first phase, an equity infusion of about Rs 100 crore is envisaged by both JV partners in equal proportion, the company said in a filing to the Bombay Stock Exchange.

This is subject to necessary approvals including board approval from both the JV partners, the company added.

The JV intends to build 10 hotels of 100 rooms each.

The company plans to enter into cities such as Mumbai, Pune, Nagpur, Nashik, Kolhapur, Ahmedabad, Surat, Jamnagar, Mundra port.

The hotels are expected to be operational in the next 30 months.

In the phase II, the company would penetrate in southern markets targeting Karnataka, Tamil Nadu, Andhra Pradesh and Kerala, it said.