Total 1,600 rooms to be operational over 10 years; the first hotel to come up at Dwarka in 2019
Multi-property deals seem to be coming back in fashion in the Indian hospitality industry. The new year's first such deal is from NYSE-listed global hospitality major Wyndham Hotel Group (WHG) that has entered into a non-exclusive development agreement with Ahmedabad-based Nebula Infraspace LLP to develop 20 hotels across India. With a total of 1,600 guestrooms, this deal also marks the debut of Hawthorn Suites by Wyndham brand in the Indian hospitality market.
Wyndham did not share details about the amount of money that will be invested in developing these hotels as the funding is to be done by Nebula Infraspace and the hotel company is only lending its brand to these hotels. Also, there is no clarity on how Nebula Infraspace will go about funding, land parcels and developing the 20-odd properties.
Rakesh Israni, managing director – India investments, Pacifica Companies LLC and a director at Nebula Infraspace LLP, did not respond to calls and text messages seeking details pertaining to this agreement with Wyndham.
The Indian hospitality industry has witnessed many such multi-property deals most of which never really fructified. It will be interesting to see if the scenario will be any different this time around.
Hawthorn Suites according to Wyndham is the group's benchmark extended-stay brand, offering guests a home away from home. These hotels will be positioned to cater to the extended stay needs of travellers in India visiting pilgrimage circuits, leisure destinations and second home locations. Interestingly, the first Hawthorn Suites by Wyndham hotel is scheduled to open in Dwarka some time next year.
Deepika Arora, regional vice president - Eurasia, Wyndham Hotel Group, said, "India's hospitality industry, especially the mid-market segment, is thriving from strong growth in domestic travel, an increase in foreign tourists, as well as a booming airline industry supported by government-led initiatives."
Wyndham has been aggressively pursuing India expansion and was in the race to acquire the 73-hotels strong Sarovar Hotels & Resorts portfolio back in 2016. While the hotel company had walked out of the deal citing valuation disagreement, it re-entered after Paris-based hotel chain, also Europe's second largest group, Louvre Hotels Group (LHG) came into the play. Wyndham, however, lost the deal to Louvre, which is owned by China's leading travel and tourism conglomerates Jin Jiang International, thereby missing an opportunity to establish a strong foothold in the Indian hospitality market.
With a global presence of more than 8,100 hotels in 78 countries, Wyndham expanded its footprint in India and neighbouring countries with the opening of 11 new hotels in 2017. In addition, the hotel company expanded its pipeline of new hotels in the region with 15 new signings. Two-thirds of the new hotel it opened were in India. Interestingly, Wyndham currently has 47 operational hotels in the Eurasia region, almost 75% of which are in India.
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- The funding is to be done by Nebula Infraspace
- The hotel company is only lending its brand to these hotels
- There is no clarity on how Nebula Infraspace will go about funding
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