Renowned international hotel company Hilton Hotels Corporation on Tuesday announced a joint venture with leading real estate developer DLF Limited (DLF).
The company, subject to approval by government authorities in India, plans to develop and own 75 hotels and serviced apartments over the next seven years.
The JV-owned hotels will represent several brands from Hilton Hotels Corporation's brand portfolio, including Hilton Hotels, Hilton Garden Inn, Homewood Suites by Hilton and Hilton Residences. The JV company will develop and build these properties, while Hilton will manage them.
DLF will hold 74 per cent in the JV company, and Hilton will hold the remaining minority stake as a symbol of its commitment to the venture.
Over the next five to seven years, Hilton will invest up to $143 million (Rs 640 crore) in the JV company, a company statement said on Tuesday.
The initial stage will involve 20 hotels in a number of key locations including Chandigarh, Chennai and Kolkata. A large number of these hotels are expected to be Hilton Garden Inns - a business hotel brand, offering focused service.
Beyond the initial 20 sites, the JV company will continue to identify and acquire sites and undertake new hotel developments.
Hilton Hotels Corporation has more than 2,800 hotels with 4,95,000 rooms in more than 80 countries. The company owns, manages or franchises a hotel portfolio of brands, including Hilton, Conrad, Doubletree, Embassy Suites Hotels, Hampton Inn, Hampton Inn and Suites and Hilton Garden Inn among others.
"India is an outstanding market for hotel development, given its powerful combination of economics and demographics. Hilton will build on its collective experience in India and the opportunity with DLF is a compelling next step to capitalise on the development momentum and build our Hilton Family of Brands in India," said Ian Carter, Executive Vice President, Hilton Hotels Corporation and CEO of Hilton International Operations.
Shakti Singh, Director, Hospitality Business, DLF said, "Through this strategic partnership, we are confident of bringing world-class hospitality and services across the country, further strengthening the benchmarks that DLF has established as a pan-Indian developer."