Beverly Hills, CA -- Two of the world's biggest hotel companies, Hilton Hotels and Accor, are each planning major expansions in India, where a burgeoning economy has sharply increased the demand for lodging.
Hilton today announced a joint-venture agreement with DLF Ltd., a leading Indian real estate developer, to build 75 hotels and serviced apartments combined over the next seven years.
"India is an outstanding market for hotel development, given its powerful combination of economics and demographics," said Ian Carter, chief executive of Hilton International Operations, referring to India's rapidly growing middle class.
The initial stage of the expansion will primarily involve Hilton Garden Inns, which are business hotels with food service that typically can accommodate groups of up to 25 participants. Plans call for 20 hotels in key locations, including Chandigarh, Chennai, and Kolkata.
The joint-venture company will also develop properties under Hilton's full-service Hilton brand as well as the limited-service Homewood Suites, and the Hilton Residences serviced apartments.
DLF will own 74 percent of the joint-venture company. Hilton will hold the remaining minority stake and will manage the properties. The joint venture must still receive government approval, an expected formality.
Five additional properties that Hilton plans to manage are currently under development in India through a separate partnership: Hilton Bangalore, Hilton Residences at Embassy Gold Links Bangalore, Hilton Chennai, Hilton Hyderabad Palace, and Shilim Retreat by Hilton.
Accor, a French company whose full-service brands include Sofitel and Novotel, yesterday announced a deal with Dubai-based EMAAR Properties to develop 100, budget-class hotels in India under the Formule 1 brand. Each hotel will contain a restaurant and consist of up to about 80 guest rooms. Ten hotels are scheduled to open in the next two years in urban locations.
In addition, Accor and joint-venture partner InterGlobe plan to develop economy-class Ibis hotels in India, with 15 Ibis projects to begin by the end of next year. Ibis hotels are to be located in five key business centers, including Mumbai and Hyderabad, as well a complex combining Ibis and Novotel hotels in Bangalore.
Accor is also planning two projects involving its upscale Sofitel brand: the Sofitel Mumbai, a 300-room hotel to be completed in 2009; and Accor's first resort property in India, a 260-room hotel in Goa, also expected to open in 2009.
A Novotel is under construction at present in New Delhi. The 320-room midscale hotel, which Accor plans to manage, is scheduled to open in mid-2008.
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