Latest Property News on 'Hotel Industry in India'

Premier Inn buys out JV stake of Emaar MGF

Whitbread Plc, UK’s budget lodging chain, has bought out its Indian joint venture partner Emaar MGF, after nearly three years went by without any progress in building its popular Premier Inn hotels. The company has trimmed down its investment plans for India as it now hopes to build fewer hotels in far lesser towns than it planned in 2007, said an official at Premier Inn India. “Whitbread Plc confirms that Premier Inn has completed the acquisition of the 50.1% stake it did not own in the JV with real estate developer Emaar-MGF.” the company said in a statement. It would get to own the lone Bangalore hotel.

Emaar MGF and other real estate firms such as DLF got into series businesses including ventures with hotel companies aiming to benefit from the roaring tourism sector and the rising business travel. These companies bought up a lot of land at high prices, but the subsequent credit crisis led to most of their business plans unviable. Now, most of the real estate firms are trimming down their business and debt to focus on limited number of residential and office projects. Read More »

Commonwealth Games a Big Boost for NCR Hospitality Industry

The latest figures on foreign tourist arrivals in India suggest that the recent buoyancy in the hospitality and aviation industry may continue in the future as well. According to figures released by the ministry of tourism, revenues from foreign tourists rose to a new high of Rs 7,042 crore during December 2009. Two years ago, the corresponding figure was Rs 5,079 crore. Also, the number of tourists arrivals during the period jumped to nearly 6.5 lakhs from a little under six lakhs two years ago. Foreign tourists account for nearly 50% of the hotel industry’s revenues and are a key revenue driver. The corresponding figure for domestic airlines is in the range of 10-20%.

The rising tide of foreign tourists will further boost hotels and airlines as they are expecting a rise in traffic with the upcoming Indian Premier League (IPL), which kicks off in the first week of March. In the quarters ahead, hotel operators are pinning hopes on business from the Commonwealth Games, which starts in New Delhi in October this year. According to estimates by the Associated Chambers of Commerce, Industry of India (Assocham), the games could result in 10 million additional foreign tourists visiting India. Read More »

Asian Hotels Splits into 3 Entities

The 28-year-old partnership that brought the Hyatt hospitality brand into the country has formally ended with the three key promoters creating three distinct entities. Sushil Gupta, Shiv Jatia and Umesh Saraf, who came together to establish the three Hyatt properties under the umbrella of Asian Hotels Ltd, have got the Delhi High Court’s nod for a de-merger, thereby splitting the erstwhile company into three separate firms. The three Hyatt properties in the country will now be operated by three companies. While Shiv Jatia will run Hyatt Regency in New Delhi, Sushil Gupta will have control of the Hyatt Regency in Mumbai via Chillwinds Hotels Ltd. Similarly, Umesh Saraf will operate the Hyatt Regency, Kolkata through Vardhman Hotels Ltd.

On Wednesday, Asian Hotels announced the company’s name stands changed to Asian Hotel (North) Ltd. It is understood that the same will be undertaken for the other two firms involved in the de-merger. As on October 31 last year, R K Jatia and the Shiv Jatia Group held 26.8 per cent in Asian Hotels, while Saraf Industries and Forex Finance, representing the Saraf interests, held 15.16 per cent in the company. The Gupta group held another 17.25 per cent. “The three groups have been together for almost 30 years. However, each of us have our own interests and want to pursue our own plans. By undertaking the de-merger, it is a win-win situation for all of us,” Sushil Gupta told Business Standard. Read More »

Marriott Plans Seven More Hotels in India

Having launched its premium business hotel, Courtyard by Marriott in Ahmedabad, leading hospitality player Marriott International Inc. is now looking at opening seven more hotels across the country in luxury, boutique and moderate segments. Marriott International, which runs hotels brands including The Ritz -Carlton, JW Marriott Hotels & Resorts, Marriott Hotels & Resorts, Renaissance Hotels & Resorts and Courtyard by Marriott, opened its 10th hotel and fifth Courtyard by Marriott hotel in India.

Talking about the company’s plans, Rajeev Menon, area vice president, India, Malaysia, Maldives & Pakistan, Marriott Hotels India Pvt Ltd said, “With the launch of Courtyard by Marriott in Ahmedabad, we have now 10 hotels in India. Also, there are 30 more hotels being developed across the country. Of these, seven will be opened in 2010 including three JW Marriott in Bangalore, Chennai and Chandigarh, one Marriott in Pune, one Renaissance in Bangalore and two Courtyard by Marriott in Pune and Mumbai.” Read More »

Hotel Industry Sees Healthy Rise

THE December quarter results have reinforced the positive sentiment which has been building up for the hotel industry. The industry has rebounded on the back of a healthy rise in occupancy levels as well as revenue per available rooms. The results of all the leading players in the industry — Indian Hotels Company, EIH, Asian Hotels, and Hotel Leela Ventures — reflect the change in fortunes with industrial growth back on track.. For the December quarter, all the big players saw a rise of over 50% in their sales while their net profit vaulted by over 100% compared to the year-ago period. A comparison on a year-on-year basis would not be appropriate, given the jolt that the travel industry received in the wake of the global financial meltdown and the terror strikes in Mumbai.

Comparing the December 2009 quarter numbers with the September 2009 quarter would present a clearer view of the extent of business recovery in the industry. The segment leader, Indian Hotels Company, for instance, reported net sales and net profit of Rs 422 crore and Rs 64 crore, respectively, during the December 2009 quarter. This represents around 48% and 400% jump on sequential basis, respectively. Much of this optimism is also reflected in the rising hotel occupancy figures in the top four cities. In the Mumbai region, for instance, the occupancy levels for Indian Hotels properties shot up to 71% during the third quarter from 55% in the second quarter and 51% in the first quarter. Read More »

US Based NRI Hoteliers Eyeing Indian Hospitality Industry

The non-resident Indian (NRI) hoteliers from the US are eyeing a share of Indian hospitality industry. An 18-member delegation of Asian American Hotel Owners Association (AAHOA) visited Gujarat, Tamil Nadu and Karnataka to explore the possibilities to commission hotel properties. The delegation spent a week in India and met local policy makers and businessmen.

In view of uproar in Andhra Pradesh, AAHOA delegation had to cancel its visit to Hyderabad. The state tourism ministers and senior bureaucrats of Tamil Nadu and Karnataka made presentations before the delegation on opportunities in hospitality industry in their respective states. In Gujarat, CM Narendra Modi met the delegation in Gandhinagar last week. Read More »

Thailand Hospitality Major to Set up Seven Four Star Hotels in India

The Thailand-based hospitality major, Amari, plans to foray into the Indian market by setting up atleast seven four-star hotels near major airports in the country, a top company official said. “We plan to open four-star hotels associated to airports and will target corporate clients,” CEO Amari Group Peter Henley said in Mumbai.

The company plans to come up with first hotel in Delhi by the year-end, followed by Mumbai next year. Other cities where Amari plans to open hotels includes Kolkata, Bangalore, Chennai and Hyderabad amongst others. Read More »

Carlson Announces Plans to Open Luxury Brant Regent in India

Global hospitality chain Carlson on Monday announced plans to open its luxury brand Regent in India with the opening of a hotel in Gurgaon in 2013. The Carlson has tied up with real estate major Pioneer Urban Land and Infrastructure (PUIL), which would be investing Rs 230 crore, for building the hotel while the US-based hospitality group would operate it.

“The Regent brand has strong historical roots in Asia. This is the first Regent brand in India. The Regent Gurgaon will have 160 rooms and the project will be completed in three years from now,” Carlson President and CEO Hubert Joly said. Carlson was here to sign a Memorandum of Agreement (MoU) with Gurgaon-based PUIL. Read More »

FICCI Calls for Granting Infrastructure Status to Hotel Industry

Industry chamber FICCI has called for granting infrastructure status to the hotel industry aimed at boosting investments in the sector. “Granting infrastructure status to the hotel industry will encourage re-investments in the hospitality sector,” according to a FICCI-Evalueserve study. The hospitality industry has been demanding infrastructure status, besides being exempted from paying tax on foreign exchange earnings and tax holidays for new hotels as it would encourage re-investment of profits into the sector.

The study added, India requires about 1.5 lakh hotel rooms over the next five years for which a huge investment is needed. Granting the status to the sector will also channelise investment flow in the tourism sector and help bridge the demand-supply gap. Besides, the study said there is also a need to accord export industry status to the hotel segment. The study said the tourism industry earned foreign exchange worth USD 11.7 billion in 2008 (calendar year), an increase of 9.5 per cent from the previous year. Read More »

JP Morgan’s Real Estate Arm picks 49% stake in Viceroy Hotels Unit

Viceroy Hotels, a mid-sized hotel and resort chain, said the real estate investment arm of JP Morgan has picked up 49 per cent equity in one of its units for Rs 700 million. JP Morgan India Property Mauritius has picked up stake in a Bangalore hotel subsidiary of the company, it said in a statement to the Bombay Stock Exchange late on Thursday.

“The investment is in line with our business restructuring plans,” said a senior company executive. “We have appointed KPMG India to advice on the restructuring process.” The company’s board also decided to raise another Rs 700 million through a stake sale to institutions. The company will sell 10 million equity shares of 10 each to raise funds, it added.