INDIA BUSINESS WORLD - DECEMBER 16th - DECEMBER 31st
- 2007
REAL ESTATE DEVELOPER VIPUL GROUP IN PACT WITH SAROVAR, RADISSON FOR RUNNING HOTELS
REAL estate developer Vipul group has tied up with Sarovar Hotels & Resorts-franchisor for Park Plaza and Park Inn brands in India-for managing six four-star hotels it plans to build. Vipul has also tied up with Radisson Hotels for its upcoming five-star hotel in Manesar, Haryana. The real estate firm would invest close to Rs 500 crore for its hotel projects, twothird of which would come through debt.
In both tie-ups, the hotel companies would operate hotels, owned by Vipul, for a fee and would not have any equity participation. The 5-star hotel in Manesar is likely to be ready in 18 months, while other hotels would be operational in the next two years. Vipul's 4-star hotels would come up in Amritsar, Ludhiana, Mohali, Siliguri and Bhuvaneswar. Land for all the proposed hotels have already been acquired.
"Sarovar brings to the table expertise in running mid-market segment hotels. It is one of the fastest growing hotel chains in this segment in the country and so made a strategic fit for Vipul," a person close to the development said.
Sarovar Hotels and Resorts, promoted by Anil Madhok and Ajay Bakaya, has at present 36 properties across India. The company's association with Carlson Hospitality Worldwide makes it master franchisor for the Park Plaza and the Park Inn hotel brands in India. Carlson is a leading international hospitality firm with presence in hotels, resorts and cruise ship operations in several countries. Sarovar Hotels also has domestic brands such as Sarovar Premiere, Sarovar Portico and Hometel.
Vipul has followed many of its real estate peers in foraying into hospitality business. DLF, Unitech, Ansals, Emaar-MGF and a host of other developers have tied up with national and international hotel chains for their hotels they plan to build.
Vipul, which has been present in residential, office and commercial space, is now also planning to develop SEZs. It has received permission to develop two IT SEZs in Nagpur and Gurgaon. The two projects are likely to be completed in five years. The company has a landbank of 1,500 acres at present.
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