Real estate developer Uppal Group has signed a revenue-cum-profit sharing agreement with hospitality major JW Marriott for developing and managing 2 five-star hotels in northern India.

According to the company, one of the hotels would come up in Gurgaon comprising 210 rooms, while other hotel in Chandigarh would have 175 rooms.

The company will be investing about Rs 500 crore for developing both properties which will be managed by international chain JW Marriott Hotels.

The latest announcement is in line with Uppal Group’s long-term plan to strengthen its foray in hospitality business. Both properties are expected to be operational by 2009.

In a separate release, the group unveiled its plans to issue an initial public offer (IPO), to raise capital during the first quarter of next fiscal. The company has already started the procedures for the same. The company would consider diluting up to 15 per cent promoters' stake in the firm.

Apart from this, the company also plans to raise money through private placements on project basis.