Sarovar Hotels and Resorts, India’s largest chain of hotels operating in the mid-market segment, is in talks with strategic investors to raise about Rs 75-100 crore to fund its expansion plans.

The company is planning an initial public offer in two-three years and it also plans to acquire a 250 room five-star hotel in a metro city.

The company operates 36 properties in India including, Hometel, and various three, four and five-star hotels under the Sarovar brand, and is also the master franchiser for Carlson Hospitality Worldwide’s Park Plaza and Park Inn brands. It has around 33 properties under various stages of development, which will all come up in about three years. The company’s current turnover is Rs 1,400 crore.

In 2006, Sarovar Hotels and Resorts placed 28 % stake with two private equity investors, Bessemer Venture Partners Trust, an affiliate of US-based Bessemer Venture Partners, and to New Vernon Private Equity for Rs 38 crore.

The group is also looking for properties at heritage sites in areas such as Goa and Bhopal. It also has plans for two hotels in Chandigarh and Himachal Pradesh. The Chandigarh property is under construction and will open soon.

Earlier this month, Sarovar Hotels has signed a MoU with Dubai based Oasis Star International. The partnership will allow Sarovar Group to operate a 126 room Highland Hotel located in Port Rashid, Bur Dubai.