MUMBAI: Yatra Capital has announced an investment of Euro 4.88 million in its joint venture-- Alliance Hospitality Services-- to develop a premium star category hotel and services apartments in Pune, Maharashtra.Yatra, an India-focused real estate fund, will pick up 20 per cent stake in the venture which also marks its entry into the country's hospitality sector, it said in a release here.

Yatra's joint venture partner, Atlas Hospitality Company Private Ltd (AHPL), is part of the Ruia Group, the promoters of The Phoenix Mills Ltd - a real estate developer.Targeted to be completed by late 2009, the property will be positioned as a premium star category hotel offering an estimated 319 rooms and 96 service apartments catering primarily at business travelers.

Near the proposed project, there are a large number of global organizations such Accenture, Mahindra British Telecom and IBM."The strategic investment by Phoenix continues to provide us with opportunities across a range of sectors. This marks our entry into the Indian hospitality sector and more specifically in the market for business travelers, a growth market driven by widening gap between demand and supply," Yatra Capital's Chairman Nigel Broomfield said.