Emaar MGF Land Ltd, the joint venture firm of Dubai real estate giant Emaar and the New Delhi-based MGF Development, will invest about $3.7 billion
NEW DELHI: Emaar MGF Land Ltd, the joint venture firm of Dubai real estate giant Emaar and the New Delhi-based MGF Development, will invest about $3.7 billion or Rs 16,000 crore in its hospitality vertical to construct 30,000 hotel rooms by 2015, a top company official said.
The funding for the project would be a mix of internal accruals, future public listing proceeds, debt, and private equity investments.
“EmaarMGF has a long-term strategic focus on enhancing the hospitality infrastructure
of the country,” Sanjiv Rai, chief operating officer (hospitality) at EmaarMGF told DNA Money.
Rai said the compay will continue to forge business relationships with hospitality brands of the world.
The realtor said it plans to develop hotels pan-India covering the luxury, business, limited services and budget segments.
The developer will partner groups such as Marriott, Hyatt, Intercontinental, Four Seasons, Whitbread and Accor - Formula 1 for its hospitality project in different segments.
Emaar MGF has already roped in Hyatt Place for a joint venture to develop 20 Hyatt Place hotels in 10 years with an investment of Rs 1,500 crore.
With Whitbread, Emaar MGF plans to develop 80 hotels across India under the “Premier INN” brand in next 7-9 years adding 12,000 rooms with an investment of $600 million for business & leisure travellers.
Earlier this year, Emaar MGF’s rival and India’s biggest realtor, DLF Ltd announced its plans to invest about $5 billion or Rs 20,000 crore to build and operate more than 25,000 rooms in the next 7-8 years.
In February, Emaar MGF withdrew its Rs 6,462 crore public listing due to market conditions.
However, Emaar MGF added that it will take a “decision on the plan to re-enter the market when the demand and sentiment is stable and better”.
One source close to the realtors listing plans has revealed that the firm is planning to go public by end of this year.
The company declined to comment on the issue.
Emaar MGF also plans to develop 153.2 acres of land with planned retail development of 11.2 million sq ft.
vivek_s@dnaindia.net
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