Berggruen Will Invest 500 Million Dollar In India

Berggruen Hotels is scaling up its plans for India and proposes to set up 8-10 four-star hotels, adding to the investments it has already announced to develop budget hotels, service apartments and resorts under the Keys brand name.

The upscale hotels will be established over 4-5 years, taking the company’s total investment in India to Rs 2,100 crore. “We launched operations in India in 2007 with budget hotels as this was the ideal segment to enter. We are now finalizing the upscale concept to be launched here, and the model will be replicated in the international markets,” chief marketing officer Partha Chatterjee said.

Berggruen Hotels is backed by New York-based Berggruen Holdings, which manages the personal investments of billionaire hedge fund guru Nicholas Berggruen. The investment will comprise $200 million in equity while the rest will come from borrowings, Mr Chatterjee said.

Construction of seven budget hotels is under way and work at eight more locations will begin this year. Berggruen had announced in 2007 that it was setting up 38 budget hotels in the country at an investment of $100 million.

The first budget hotel will open in January, 2009, in Kerala’s capital Thiruvananthapuram, while the first four-star property is expected to be operational a year later at Valsao beach in Goa.

Berggruen has roped in leading Japanese architect Shigeru Ban for the four-star hotels. “We expect to have around 4,500 rooms under operation by 2011,” Mr Chatterjee said, forecasting a turnover of Rs 350 crore by then.

Berggruen Holdings’ other investments in India include an equipment rental company, a vocational education provider, a car rental company, real estate development deals and investments in the stock markets.

One Comment

  1. Posted June 3, 2008 at 4:06 am | Permalink

    According to my estimate, around 37,000 hotel rooms will be added in the next three years in India. First and foremost, Best Western will establish 100 hotels and 10,000 rooms under its umbrella in India. Berggruen Hotels has already announced $100 million investment to set up 38 hotels in India. Hilton is going to invest $143 million to set up 70 hotels in association with DLF. These are just some of the headlines that have hit the newspapers in the recent past. There are dozens of other investors, existing and new, who have announced plans of plunging into India’s booming hospitality industry. In fact, there’s so much money coming in-at least on paper-that investors would be mad to think that there’s room enough for all. The economy’s growth rate, at 9.4 per cent, eventually had to have a cascading effect on investments in the hospitality sector and it’s not just the foreign players but also the Indian hospitality companies who are getting into high gear.For more view-

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