Mumbai-based real estate firm Peninsula Land has formed Joint venture with Arrow Webtex Ltd to enter into Hospitality Business. Under the pact, a Special Purpose Vehicle (SPV) will be created. The SPV will be formed by 50-50 partnership between both companies to build Business Hotels.

Arrow Webtex, promoted by Jaydev M Modi, is engaged in the business of manufacturing narrow woven fabrics, real estate consultancy and development of properties.

Both the entities will invest Rs 1 billion in the initial phase. The JV plans to build 10 Hotels of 100 rooms each, aggregating to 1000 rooms.

The Company also plans to enter into the state of Maharashtra in cities such as Mumbai, Pune, Nagpur, Nashik, Kolhapur, the state of Gujarat in cities such as Ahmedabad, Surat, Jamnagar, Mundra port and the state of Goa.

In the second phase, the JV is targeting southern markets such as Karnataka, Tamil Nadu, Andhra Pradesh and Kerala, Peninsula said today in an official statement.

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