Diversified business firm Empee Group today unveiled its first five-star hotel - Hilton Chennai - that would be operated by U.K.-based Hilton Hotels and Resorts.

The 204-room hotel, built on 42 grounds (one ground is approximately 2,400 square feet) of land by Empee group, was the first in the city which would be managed and operated by Hilton, Empee Group Chairman Purushothaman said.

Empee Group has invested Rs. 400 crore in the project in which 150 rooms would be added in the next phase, he told reporters here.

Empee Group Managing Director Nisha Purushothaman said the expansion would be completed in another three years.

It had also taken up a three-star 150-room hotel project at an investment of Rs. 150 crore replacing the “Grand Orient” restaurant on the arterial Anna Salai, she said.

She said the company also planned to foray into real estate business with construction of 1,350 residential apartments in Kuthambakkam on the city outskirts.

“We have good land bank... about 13 acres in Kuthambakkam and another 20 acres in Sriperumbudur…In Bangalore we have about five acres in Whitefield. We are looking for residential properties which will also have a restaurant,” Ms. Purushothaman said.

Hilton Chennai, to be inaugurated on Monday by Indian Overseas Bank Chairman and Managing Director M. Narendra, is the fourth Hilton worldwide property in India.

At present, Hilton has two hotels – one in New Delhi and the other in Mumbai.