Complete Property Market Updates of Singapore

April 27, 2008

M&C in venture to invest US$46m in 2 Indian hotels

Filed under: General — Propertymarketupdates @ 2:28 am

The Chennai and Bangalore hotels will target business travellers

MILLENNIUM and Copthorne Hotels plc (M&C), a subsidiary of City Developments Limited, has announced a joint venture company in India with Rakindo Developers Pvt Ltd – M&C Rakindo Hospitality – to invest US$46 million in developing two hotels in the south of the country.

Rakindo Developers is a 50-50 joint venture between Chennai-based Trimex Group and United Arab Emirates-based Rakeen Pvt Ltd.

Mr Kwek: Hopes to build business hotels in major growth cities in India over the next five years

‘The group’s foray into India is to take advantage of the rapid growth of the Indian economy. We hope to focus on markets with high investment potential and build new business hotels in major growth cities in India over the next five years,’ said M&C chairman Kwek Leng Beng.

The hotels, currently under construction in Chennai and Bangalore, will be managed under a new brand that will target business travellers. Described as contemporary and affordable, the hotels will offer, among other things, wireless connection and private booths to conduct business meetings.

The 120-room hotel in Chennai is slated for completion in the third quarter of 2009, while the 300-room hotel in Bangalore will come onstream in the first quarter of 2010.

Rooms are expected to cost between US$100 and US$120.

Data from the 2007 Jones Lang LaSalle Hotels India Digest reports strong growth in RevPAR (revenue per available room) in three major Indian cities – Delhi, Bangalore and Mumbai – as a result of inadequate supply to meet the robust demand over the last five financial years.

In Bangalore, for instance, most hotels cater to the premium and budget segments, rendering the 3-4 star segments largely unserved.

Hyderabad, Mumbai and Delhi are being considered as possible sites for additional hotels in the future. The joint venture partnership will inject equity investments of up to US$100 million.

Separately, M&C also announced the launch of its newest hotel, the Grand Millennium Beijing, which opens its doors for business today. The hotel is expected to anchor the group’s presence in China and facilitate expansion in Asia.

Source : Business Times – 10 Apr 2008

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