|By Kausik Datta, The Economic Times,
IndiaMcClatchy-Tribune Regional News
Jan. 21, 2008 - MUMBAI, India -- Real estate and hospitality company Emaar MGF has agreed to enter into a joint venture with Global Hyatt Corporation of the US to set up a chain of business hotels in India under the brand name Hyatt Place. Emaar MGF is jointly owned by Emaar Properties, PJSC of Dubai and India's MGF Developments.
According sources, both the parties have recently signed an MoU to this effect. A detailed agreement will follow soon. When contacted, the Emaar MGF spokesperson confirmed the development, but declined to give further details.
Hyatt Place is a recently-developed brand of Global Hyatt Corporation, a premier hotel company owned by the Pritzker family. Global Hyatt manages over 735 hotels and resorts with over 1.36 lakh rooms in more than 44 countries. The list of its affiliate brands include Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt Resorts and Hyatt Summerfield Suites.
Sources said Emaar MGF will be the majority partner in the venture with a 74 percent stake. Hyatt will own the remaining 26 percent equity and will also provide management and brand services, including marketing, reservations and global sales services.
Sources said the JV will develop 20 Hyatt Place hotels with around 3,000 rooms across the country over next 10 years with a proposed investment of Rs 1,500 crore. During the first four years of its operations, the JV will set up properties in Mohali, Gurgaon, Mysore, Mangalore, Hyderabad, Lucknow, Cochin and Goa.
Industry sources said the 50-year-old Global Hyatt Corporation recently launched the Hyatt Place brand to satisfy the contemporary, multi-tasking business travellers. Its format is a combination of personal and professional activities. Hyatt Place offers an atmosphere of casual hospitality with a balanced mix of comfortable and functional amenities such as spacious guestrooms with plush interiors, three-meal restaurant, lounge, business centre and fitness room.
New Delhi-based Emaar MGF is engaged in development of residential, commercial, retail, hospitality, SEZ and IT parks, education and healthcare properties. It has recently rolled out an integrated mega township project in Mohali called Mohali Hills and The Palm Springs, a residential community project in Gurgaon.
It has also announced JVs with Accor and Premier Travel Inn for the development of hotels in India. Emaar MGF is in the process of mobilising around Rs 7,000 crore through an IPO, expected to hit markets in February.
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