Indian Hotels inks two China deals

MUMBAI: After expressing interest in China for years now, Indian Hotels Co Ltd (IHCL) has finally forayed into the Middle Kingdom with two management contracts for Taj Hotels, Resorts and Palaces.

Owned by Zhong Qi International Investment Company, the first property will become operational by March 2009 at the Temple of Heaven in Beijing, while the second one will come up in three years in the Hainan province.

Managing director Raymond Bickson said China has a lot of internal demand for hospitality and for inbound tourism, which is growing at 8%. “The country recorded 137 million tourists in 2007 and has a booming luxury tourism segment.”

The hotel in Beijing will initially open with 46 rooms developed in traditional Chinese style, while 60 more will be added a year later, calling for 200 million renminbi (Rs 126 crore) worth of investment from Zhong Qi.

The property in Hainan will be a 1 billion renminbi (Rs 630 crore) project involving 500 rooms and 40 villas. It will be pitched as a premium resort destination.

The management contract, signed between Taj International Hong Kong Ltd, a wholly owned subsidiary of IHCL, and Cuiting Hotspring Hotel Management Company Ltd, subsidiary of Zhong Qi, is for 15 years.

IHCL reported a turnover of Rs 398 crore for April-June quarter of 2008, up 14% from same quarter last year. The profit after tax was Rs 61.27crore, a 12% growth.
s_tanvi@dnaindia.net