INDIA BUSINESS WORLD - FEBRUARY 16th - FEBRUARY 29th - 2008
PARSVNATH HOTELS IN JV WITH ROYAL ORCHID
Parsvnath Hotels, a wholly-owned subsidiary of Delhi-based real estate developer Parsvnath Developers, is learnt to have formed a joint venture (JV) with Bangalore-based Royal Orchid Hotels. The JV will develop 10 hotels at an investment of Rs 500 crore.
Parsvnath Developers declined to comment on the issue. However, people close to the situation said that Parsvnath holds a majority stake in the JV called Parsvnath Royal Orchid Hotels. Royal Orchid Hotels, promoted by C K Baljee, is listed on the Bombay Stock Exchange, and reported net sales of Rs 33 crore in the December quarter.
The proposed hotel projects are likely to be completed in the next five years. These projects include four five-star and four four-star hotels. In addition, the JV company also plans to develop resorts and service apartments. Over 1,000 rooms are likely to be built under the joint venture.
Parsvnath Developers plans to have at least 17 hotels across 13 cities operational by 2011. The company recently tied up with tobacco and hotel company ITC to manage 50 hotels, comprising over 4,000 rooms, across the country in the next five years. According to the agreement, Parsvnath will own and develop the hotels at an investment of Rs 2,500 crore and Fortune Park Hotels, a subsidiary of ITC, will run them under the brand names Fortune Select, Fortune Park and Fortune Inn. Parsvnath also plans to tie up with international hotel chains to manage more hotels it plans to build. The company is said to be in talks with JW Marriott, Starwood and Intercontinental for management tie-ups.
Royal Orchid Hotels, which runs seven hotels and resorts in Bangalore, Mysore and Jaipur, has been on an expansion spree. Royal Orchid’s subsidiary—Icon Hospitality—acquired the 130-room Royal Orchid Central Hotel in Bangalore for Rs 82 crore in November. A month later, the company acquired 30-acre property in Dar E Salaam in Tanzania. The company has plans to run hotels in South-east Asia and the Middle East besides develop a chain of budget hotels in the country. Besides Parsvnath, many other real estate players such as DLF and Omaxe have also tied up with hospitality firms to develop and manage the hotels they plan to build.
|
