Berggruen Hotels, incubated in Indian by global private equity and hedge fund investor Nicholas Berggruen, is foraying into Morocco.
The hospitality company, incorporated in India and run by Indian professions, has entered into a joint venture with Filacom, a member of Morocco’s diversified Laraki group, to set up budget hotels branded as Keys.
“Two years ago when we set up the global hospitality business in India, our main objective was to tap overseas markets and entry into Morocco is part of this. We will construct seven hotels in the first phase,” said Sanjay Sethi, managing director & CEO, Berggruen Hotels.
Seven hotels in three and four star categories are planned at Casablanca, Rabat, Mekens, Mohammedia, Rabat and Fez.
“There is a need for branded budget hotels in Morocco which is estimated to draw 10 million tourists by 2010. We are planning an initial investment of $50 million, with an additional $25 million in phase two when would increase presence in other cities,” said Mehdi Laraki, president, Laraki group.