Berggruen Hotels, backed by New York-based Berggruen Holdings Inc, a private investment company, is now looking to establish a second hotel brand in India after “Keys”.
To set up 8-10 properties in the country
KOLKATA: Berggruen Hotels, backed by New York-based Berggruen Holdings Inc, a private investment company, is now looking to establish a second hotel brand in India after “Keys”.
Further details were not disclosed. Keys was launched early in 2007 as a three-star, full service, value-for-money brand.
However, currently, the company is finalising plans to unveil a new brand, pegged a notch higher than Keys, as a four-star, full-service hotel. Berggruen is looking to set up 8-10 of these properties across the country though it is not setting a time frame. The first property is likely to come up in Goa.
“Currently, we are working with brand consultants regarding the second brand,” Sanjay Sethi, managing director and CEO, Berggruen Hotels said.
The company is also weighing the option of raising funds through the private-equity route though Sethi was unwilling to reveal the quantum that could be offloaded. Berggruen is following the primary model of acquiring land to build its own hotels. However, lately, it has decided to look at management contracts too, but only greenfield projects.
Under Keys, there will be all three formats — resorts, hotels and service apartments — with room tariffs in the Rs 2,000-2,500 range. Overall, plans are afoot to have 38-odd Keys properties operational by 2011-12.
So far, 15 sites have been finalised, of which nine are outright land purchases, five have been taken on long lease and one will be a management contract. Three projects are in progress in Bangalore, and one each in Kochi, Kovalam, Goa, Vadodara, Pune, Aurangabad, Jammu, Ludhiana, Lucknow and Kolkata.
The average size of the properties will be 100 rooms, with the largest (285 rooms) one coming up in Kolkata.
m_madhumita@dnaindia.net
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