bangaloremumbai icici prudential amc is picking up 50 stake in the hospitality venture of chennaibased xs real properties for rs 150175 crore a banking source said the venture in which xs real promoter holds the remaining stake will set up 810 hotels across southern cities with rs 1000 crore outlaythis will be icici prudential amcs second investment in chennai after its recent rs 62 crore infusion into another budget hotel chain sabari inn the amc has set up a dedicated rs 800 crore fund for real estate play in the countrysources said xs real has inked a tieup with a singaporebased midtier hotel operator rendezvous international for the hospitality foray rendezvous operates 11 properties across asiapacific region currently when contacted xs reals hospitality business vice president girish rao declined to commentthe hospitality venture will raise about rs 600700 crore as debts apart from the two promoters equity contribution of around rs 300350 crore banking sources added the initial locations for the hotels could be the main cities like bangalore hyderabad chennai and kochithis will be xs reals second brush with fund action last year it inked a special purpose vehicle spv deal with singapores gic for a rs 1400 crore residential project in chennai xs real which stakes claim to popularizing the bunglow apartments concept has also announced foray into it parks sezs and integrated townshipsfund action has been hotting up in the indian hospitality sector especially in the budget to four star hotel category indias organised hospitality sector currently boasts of a 90000 room inventory which is expected to add about 150000 rooms more by 2010the midtier hotel chains are in the midst of rapid expansion as business and leisure travel picks up in the country