Snippets

Warburg invests Rs 280 cr in Lemon Tree Hotels

Private equity firm Warburg Pincus has invested Rs 210 crore in Lemon Tree Hotels for an equity stake of 26 per cent. The investment will be used to further expand the Lemon Tree network and enhance the company's pan-India presence. Lemon Tree Hotels operates in the mid-price segment of Rs 3,000 to Rs 5,000 per room night and caters to business and leisure travellers looking for upscale accommodation at moderate prices. The equity firm is also investing Rs 70 crore in a new chain of limited service budget/economy hotel called Red Fox Hotels priced at Rs 800 to Rs 2,000 per room night.

Patu Keswani, chairman, Lemon Tree Hotels, said, "The company has embarked on an investment programme of Rs 950 crore to build 11 properties across the country, of which two properties are operational, and two more will open this year in Pune and Goa respectively."

"We are especially pleased that Warburg Pincus has acquired a significant part of employee shares enabling many employees to unlock more wealth by working for three years with Lemon Tree than in their previous employment of many years in other hotel companies elsewhere," Keswani added.

DLF to develop hotel in Chandigarh

Real estate major DLF recently bagged a prestigious project to develop a five-star deluxe hotel at the Rajiv Gandhi Chandigarh Technology Park (RGCTP). The group will be implementing this project along with its strategic partners and associates. The hotel will have a room inventory of 250 rooms and convention facilities for 1200 people, spread over four acres of land. Keeping in view the exponential growth opportunities in the hospitality sector, DLF intends to develop more hotels in four-star, five-star and deluxe segments.

Park Hotels acquires land in Hyderabad and Mumbai

The Park Hotels recently acquired land in Hyderabad and Navi Mumbai. The property in Hyderabad is a 240-room hotel scheduled to be ready by the end of 2008, whereas the property in Navi Mumbai is expected to become operational by the end of this year. In line with the other hotels of the group, the upcoming projects are also going to be luxury boutique hotels and will cater to the business travellers. Also, the group recently re-launched The Park, Vishakhapatnam with new rooms, a new restaurant and a poolside relaxation space.

Accord enters Pondy

The Accord Metropolitan Hospitality, Singapore, is planning to open a 150 room property by the year 2008 in Pondicherry, with an investment of about Rs 30 crore. The construction of this property will start by mid-August this year. Speaking to Express Hospitality, the hotel's CEO said, "A lot of IT professionals frequent Pondicherry and we are looking at constructing a business class hotel in the premium or the four-star segment." The group, which is well entrenched in Chennai, is looking at a mix of a contemporary and French touch for the new hotel. It is also looking at expanding its brand in Chennai.

Marriott International opens in Hyderabad

Marriott International opened a 297-room Hyderabad Marriott Hotel, after an extensive renovation and expansion of the former Viceroy Hotel. The hotel is the seventh Marriott property in India and is owned and operated by Viceroy Hotels. The hotel has opened with a corporate rate of USD 230 for a superior room and features one of the largest convention centres in India. The hotel offers 3,083 square metres of space for conferences and social events, consisting of a ballroom and 14 additional meeting rooms.

Summit on institutional financing & investment opportunities

Government of Punjab with the International Punjabi Chamber for Service Industry (IPCSI) has planned an international summit on institutional financing and investment for infrastructure development in aviation, tourism and hospitality industries in northern India, with an aim to diversify the region's economy and generate employment opportunities and entrepreneurship. The summit will be held on August 28, 2006, in New Delhi.

Union Minister for Tourism & Culture, Ambika Soni will be inaugurating the summit.