ITC, Parsvnath tie up for 50 hotels
Parsvnath hotels signs a memorandum of understanding with ITC Ltd’s Fortune Park Hotels to develop 50 hotels across the country in the next five years, reports Varun Soni.india Updated: Feb 04, 2008 22:33 IST
Parsvnath hotels, a subsidiary of Parsvnath Developers, has signed a memorandum of understanding with ITC Ltd’s Fortune Park Hotels to develop 50 hotels across the country in the next five years. The tie-up entails setting up 20 five-star, 20 four-star and 10 three-star and budget hotels at an investment of Rs 2,500 crore.
ITC Welcomgroup manages more than 80 hotels under different brands in India through the brands ITC Luxury Collection, Sheraton, WelcomHotel, Fortune Hotels and WelcomHeritage.
Parsvnath will own and develop the hotels, while Fortune Park will manage them. The hotels will run under the brand names Fortune Select, Fortune Park, Fortune Inn and Fortune Faith.
“More than 4,000 rooms will be set up under these brands for different categories. Fortune Select hotels will have at least 100 rooms, Fortune Park over 75 and the other brands at least 50 rooms each,” said Pradeep Jain, chairman, Parsvnath Developers.
India has been witnessing a spurt in hotel projects over the last few years. The hotel industry is expected to grow rapidly, reaching Rs 82,676 crore by 2010. It is estimated that about 70,000-80,000 rooms will be added over the next two years. In addition, over 200,000 rooms will be added over the next five years throughout the country.
A number of real estate developers have tied-up with domestic as well as international hospitality chains to cash in on the boom. DLF has joined hands with Hilton Hotels and Four Seasons and Emaar-MGF has a joint venture with Accor.
Parsvnath is coming up with 17 hotel projects in the first phase, of which Fortune Hotels will manage seven projects in Ranchi, Lucknow, Indore, Jodhpur, Ujjain, Chandigarh and Dehradun. These hotels will be operational by 2010. The company is also developing hotels at Shirdi, Mohali, Hyderabad, Ahmedabad, Goa, Gurgaon and Kochi. The company has plans to develop 75-100 hotels in the country in the next 10 years.