Berggruen Hotels, owners of the Keys brand of hotels, is planning to launch a four-star, full-service hospitality brand in India soon.
New hotel will be positioned a notch above its Keys brand launched in 2007
KOLKATA: Berggruen Hotels, owners of the Keys brand of hotels, is planning to launch a four-star, full-service hospitality brand in India soon.
The company, which is a part of the New York-based Berggruen Holdings Inc, had entered India’s hospitality sector with the launch of Keys, its three-star, full-service and value-for-money brand, in January 2007.
Berggruen will initially set up 8-10 of these four-star properties across the country, though it hasn’t set any time frame for the launch. At present, only one location, Goa, has been finalised.
Sanjay Sethi, managing director & CEO of Berggruen Hotels, said, “Currently, we are working with brand consultants regarding the second brand.”
The company is also weighing options for raising funds through private placement of equity. However, Sethi did not give details about the quantum that could be offloaded.
The company started out in India with an initial equity capital of $100. Of this quantum, $25 million has been invested so far. It also has a debt financing option of $150 million over the next 3-4 years, of which it is now drawing $27.5 million.
Berggruen is following the primary model of acquiring land for its hotel brands. It is also looking at leasing properties for 50 years. However, lately, it has decided to take up management contracts also for greenfield projects.
As far as its Keys brand is concerned, the company plans to have three formats - resorts, hotels and service apartments, with room tariffs in the Rs 2,000-2,500 range. The company plans 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 lease and
Three projects are in progress in Bangalore, and one each in Cochin, Trivandrum, Kovalam, Goa, Baroda, Pune, Aurangabad, Jammu, Ludhiana, Lucknow and Kolkata. These properties will have around on an average 100-odd rooms with the largest being a 285-room hotel at Kolkata.
m_madhumita@dnaindia.net
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}