Foreign Hotel Chains to Pursue Investment Plans in India

April 7, 2007	(4 votes, average: 3.5 out of 5)  Loading ...
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Starwood Hotels & Resorts, a leading hotel and leisure company, is looking forward to expand its operations in India. The move will bring significant changes in the hotel industry.

The group has been operating in the country for the last 36 years through its brands – Sheraton and Le-Meridien, for a fee.

Since 100% Foreign Direct Investment (FDI) is allowed in the hotel industry, the Starwood group can scout from a plethora of investment opportunities available in the country.

Even though the rules are highly relaxed, the business has merely attracted $500 million in investments. However, the situation seems to be improving now.  The group is looking forward to invest in India properties and holding talks with the owners of its existing properties. It may also partner with others to bring other brands in the country, says Thomas J Monahan, senior V-P at Starwood Hotels.

He, however, denied telling the amount allocated for the investment purpose. Close on heels of Starwood are other players as well.

Intercontinental Hotels Group (IHG), the world’s largest hotel group by number of rooms, has also shown large interests in making investments in building rooms.

IHG, which owns Crowne Plaza, Holiday Inn and Candlewood Suites as brands, holds a stake in the 59-room Intercontinental Hotel, situated at Marine Drive in Mumbai.

Foreign hotel chains are quite interested to invest handsome money to partner with different property developers. Since, India has emerged as a common hunting ground for all the hotel chains; they do not want to loose any prospect in terms of location and positioning.

News Published Under:   Real Estate India, Foreign Direct Investment in India |

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