Berggruen Hotels plans to start its hospitality business in the Middle East and North Africa (MENA) with an initial investment of $100 million.
Will set aside $100m; to make 1,000 rooms in Egypt, Morocco, Turkey and the UAE
MUMBAI: Berggruen Hotels plans to start its hospitality business in the Middle East and North Africa (MENA) with an initial investment of $100 million. The locations being identified in the region include Egypt, Turkey, Morocco and the United Arab Emirates (UAE).
Berggruen Hotels is a subsidiary of the US-based Berggruen Holdings.
It launched the KEYS brand of boutique budget hotels in India in January. Both Sanjay Sethi, managing director, Berggruen Hotels, and Atul Lall, CEO and COO of the international division, were not available for comment.
However, a company official said the company hopes to start construction of 1,000-odd guestrooms in the region.
“By 2012, the plan is to have a massive presence with 3,000 rooms across the region. The expansion will be executed in two phases. Starting with immediate acquisition of properties and construction on these commencing thereafter in the first phase we will get into further acquisitions in 2010 that will be phase II,” the official said.
The capital outlay in Egypt is expected to be $25 million for two business hotels of 150 rooms each in Cairo and Alexandria by 2010 and two more hotels in Upper Egypt and Red Sea areas in the second phase of expansion. The plans in Turkey would also include two business hotels of 150 rooms each in Istanbul, a resort in Antalya, a resort and business hotel in Izmer and a business hotel in Ankara. The capital outlay there will be upwards of $30 million.
The company is believed to be exploring strategic partnerships in Morocco and intends to have two business hotels in Casablanca, one of which will be an upscale model, a leisure hotel in Tangiers and an upscale business hotel in Rabat by 2010.
Phase II of the expansion will see construction of a resort in Marrakesh. The overall capital outlay in the country will be $20 million.
As for the United Arab Emirates (UAE) market is concerned, approximately 600 guestrooms are being planned. The hotels will be in the form of one business hotel each in Ras al Kaimah, Ajman and Abu Dhabi. This apart, possibilities for hotel projects in Bahrain and Qatar are being explored as well.
Towards the end of December this year, the international division plans to explore Vietnam and China for development of KEYS hotels there.
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