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Hyatt to spend $200 m to build six hotels

Global Hyatt Corporation plans to develop six properties in India with an investment of around Rs 1,000 crore in 3-4 years in a joint venture with real estate firm Emaar MGF.

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Amid an acute economic downturn, Global Hyatt Corp, the international hospitality major, plans to build six new hotels under its upper mid-segment brand, in a joint venture with real estate firm Emaar MGF Land Ltd.

The JV will invest $200 million in a mixture of equity and debt, and the hotels will be operational in four years. The hotels, to be launched under ‘Hyatt Place’ brand, will come up in Gurgaon, Hyderabad, Mysore, Lucknow, Indore and Mangalore with a total of 950 rooms. The JV plans to build and operate 20 such hotels.

Emaar MGF owns 74% stake in the JV and Hyatt the rest. “We would put our capital behind the first six hotels and would invest $20-$25 million from our side to set things rolling. Our other partner will also bring in some equity and then we will look for loans,” Ratnesh Verma, senior vice president, real estate and development at Hyatt India Consultancy told DNA.


Emaar MGF has acquired and paid for the land and all the six projects are currently in the developmental stage, but construction will start in two months, company officials said. Hyatt, which has 3,000 employees, will hire 7,000 employees across 20 locations for its new hotels.

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