Latest Property News on 'Hotel Industry in India'

Berggruen to invest 10 billion in India

Berggruen Hotels, the hotel division of Berggruen Holdings, a New York-based private investment company, is planning to invest big time in India. It has so far invested Rs 1.5 billion and acquired land in about 18 cities. It had slowed down its land acquisition spree some time ago, because of the shooting real estate prices. In cities like Mumbai, Delhi, Chennai, Jaipur and Pune, the prices had shot up as high as 60%, forcing Berggruen and other hospitality companies to slow down.

Partha Chatterjee, whole-time director and chief marketing officer, Berggruen Hotels, had reportedly told DNA Money that the entire quantum of debt will be drawn up according to a need-based blueprint to fund about 38 properties in India till 2012 and will include the cost of land and construction. Berggruen will fund its overseas ventures according to a need-based plan, like it is doing in India, since there is no point in keeping idle money, Chatterjee said. The company is also looking at greenfield projects overseeas — in Middle East & North Africa, South East Asia and South Asia. The first Berggruen property in India is likely to start operating from February next year in Thiruvananthapuram (Trivandrum) as the company had zeroed in on land there earlier.

Carlson not to renew contract with Sarovar Hotels

Carlson’s contract with Sarovar Hotels as master franchisee of Carlson’s Park Plaza and Park Inn brands in India is not likely to be renewed, according to reports. Minneapolis headquartered Carlson remains unlikely to renew the arrangement as the company feels it has gained enough insight into the Indian hotel and hospitality market and prefers to manage its own brands in the country directly. It has been leaning more towards the management contract model of late, which yields higher revenues. Global hospitality group Carlson owns the Radisson, Regent and Country Inn & Suites brands besides interest in restaurants and cruises. It manages the Radisson brand on its own but Sarovar Hotels and Resorts which runs properties like Hotel Marine Plaza, a sea-facing property on Marine Drive in Mumbai and Hotel Park Plaza in Gurgaon, has been given the master franchisee for its Park Plaza and the Park Inn hotel brands.

“It is highly unlikely that the arrangement would see a renewal,” a source disclosed according to a report. When contacted, K B Kachru, Vice president for South Asia for Carlson refused to comment on the development, but did not deny the report either. The change in relationship between Indian hoteliers and foreign players should not be seen as a problem but as a sign of a maturing market, according to an industry consultant. Similar changes have already been taking places in the hotel industry. For instance, only recently ITC Hotels and Starwood Hotels changed the terms of their collaboration after 30 years of alliance. Oberoi Hotels owned by East India Hotels broke their ties with Hilton which has since joined hands with DLF. Read More »

Six Hotel Projects shelved as Small Realty cos give up

A buoyant real estate market last year saw several realty firms foray into the hospitality sector. But with slowdown hitting real estate and choking cashflow, several small realty firms have been forced to put at least half a dozen hotel projects on the block.

A developer has put on the block a 200-room hotel project in Ahmedabad that has a management tie-up with a reputed international hotel brand. Work on the project is around 60% complete. Similarly, two mid-size hotel projects in Bangalore, which are in the early stages of construction, and one each in Pune, Chandigarh and NCR have been put on the block. Almost all the projects are mid-size. Some developers are looking at completely exiting the hotel projects while others are looking at stake sale. Read More »

Langham Hotels forays into India with Wadhwa Developers

Hong Kong-based Langham Hotels International (LHI) is all set to foray into the Indian hospitality segment. It has recently tied up with Mumbai-based real estate developer Wadhwa Developers for the same. The hotel chain entered into a management agreement with the developer for a five-star property being developed in Pune. It will introduce its five-star brand Langham Place Hotel for the same. The property located near Koregaon Park, one of the prime locations in Pune, is slated for operations by 2010 end.

The property will consist of around 180 rooms, a coffee shop and a speciality restaurant. It will also house Chuan Spa, the group’s spa brand. The group will also focus on developing an extensive conferencing facility to cater to the meetings, incentives, conferences and exhibitions (MICE) segment. Read More »

Builders Pull out of Hotel Ventures as Profits Dry up

Leading property developers are pulling out of proposed deals with hospitality majors, including Royal Orchid Hotels and Ramada Worldwide, as cash flows in the real estate sector are slowing. Realtors are reconsidering plans to enter the hospitality sector, according to sources.

Real estate developers with presence in National Capital Region (NCR), Bangalore, Chennai, Pune, among others, are opting out of four and five-star hotel projects. According to sources, a five-star hotel in Pune shelved its plans recently as its developer pulled out of the commitment. Read More »

Sarovar to Sign 8-Hotel Deal with Phoenix JV

After its five-hotel deal with Vipul Hospitality late last year, Sarovar Hotels & Resorts is now in the process of finalizing a brand new eight-hotel deal with the JV Company of Phoenix Hospitality and Entertainment World Developers (EWDPL).

The eight hotels, says Sarovar Hotels & Resorts executive director Ajay Bakaya, will be set up at tier-II locations of Raipur, Udaipur, Nanded, Jabalpur, Chandigarh, Indore, Ujjain and Bhilai. At many of these places, the plan is to have malls-cum-hotels for which development and construction is already underway. Read More »

IHC to spend $1 bn on buying Hotels

Indian Hospitality Corporation (IHC), a joint venture of Gordon House Hotels, Mars Restaurant and SkyGourmet Catering formed last year, plans to spend as much as $1 billion to acquire hotel groups and restaurant chains.

The company has hired Ravi Deol as chairman and chief executive of Mars Restaurants, the hotel and food services division of IHC, to initate acquisitions. Deol is the former managing director of Barista and ex-chief executive of FieldFresh Foods. Read More »

Serviced Apartments Check in as Hotels Lag

Having filled the breach left by an acute shortage of hotel rooms in India, the serviced apartments segment is coming into its own with the entry of corporates aiming for consistent quality standards as they try and tap into a lucrative market.

A measure of the shortage is the fact that India has about 1.1 lakh hotel rooms compared to 1.35 lakh rooms in just the Chinese commercial capital Shanghai. The Planning Commission estimates the scarcity at 1.5 lakh rooms by 2010. Read More »

GL Hotels to Invest Rs 600 Crore

GL Hotels, which owns the Mayfair banquet in Mumbai, plans to invest at least Rs 600 crore to open six niche lifestyle boutique hotel properties and 10 additional banquets by 2010.

The hotel founded by Ghai Enterprise aims to build 100-room boutique hotels in leisure and business destinations across the country. Read More »

GL Hotels to Invest Rs 600 Crore

GL Hotels, which owns the Mayfair banquet in Mumbai, plans to invest at least Rs 600 crore to open six niche lifestyle boutique hotel properties and 10 additional banquets by 2010.

The hotel founded by Ghai Enterprise aims to build 100-room boutique hotels in leisure and business destinations across the country. Read More »