News for the Hospitality Executive
Interstate Hotels & Resorts/JHM Hotels' JV Management
to Open Four Points(R) by Sheraton in Jaipur, India
First Duet India Hotels' Investment Property in India, JHM Interstate Hotels India to Manage
ARLINGTON, Va., Sept. 21, 2009 - Interstate Hotels & Resorts (NYSE:IHR) , a leading hotel real estate investor and the nation's largest independent hotel management company, today announced that its India-based joint venture management company, JHM Interstate Hotels India, will open its first managed hotel in India, the 115-room Four Points by Sheraton Jaipur, City Square, in October. The hotel's address is: City Square, Vasundhara Colony Tonk Road, Jaipur, Rajasthan 302018 India
It will be the second Four Points hotel to open in the country and the first project developed by Duet India Hotels Limited, a U.K.-based, real estate investment group dedicated solely to hotel investment and development in India. Interstate and JHM Hotels, its JV partner, have an equity interest in Duet, which provides JHM Interstate Hotels India the first opportunity to manage the hotels developed or acquired by Duet.
"With the opening of this hotel, we will add a sixth country outside of the United States, our first in the Asia Pacific region, to our management portfolio as we continue to extend our reach internationally," said Thomas F. Hewitt, chairman and chief executive officer. "India remains one of the world's fastest growing economies, with projected growth of 5 to 6 percent this year despite the global economic downturn."
Jaipur is part of India's Golden Triangle, along with Delhi and Agra, site of the Taj Mahal, and has long been a major tourist mecca. More recently, the city, which is the capital of the state Rajasthan, has become a hotbed of economic development activity, which is decreasing its reliance on leisure business alone and attracting growing numbers of business travelers with a need for lodging. In June, Jaipur opened a new international airport, dramatically improving domestic and international access to the city. "We believe the Four Points brand will appeal to both travel groups, with its exceptional amenities, comfortable and stylish decor and value pricing," he added.
H. P. Rama, founder and chief executive officer of JHM Hotels, noted that the combined strength, depth of resources and international and in-country experience of the joint venture management company were major factors in Starwood's support of JHM Interstate Hotels India. "Our strong relationship with Starwood and other brands and proven track record in multiple countries have given us a competitive edge in securing premium flags for our hotels in new markets, such as India. We have significant hotel and food and beverage operations strength in place that fully understands the markets in India, and we look forward to rapidly ramping up this property and aggressively expanding to become the leading third-party operator in the country."
"We are very pleased to be opening our first hotel in India in partnership with a premier lodging brand and a management company internationally known for excellence," said Henry Gabay, chairman of the UK-based Duet group.
Located in the new City Square, at Vasundhara Colony, Tonk Road, the newly built, four-story, upscale hotel is situated near M1 Road, the city's commercial hub, convenient to major government and business organizations, universities and the new international airport. The City Palace, Amber Fort, Hawa Mahal and other popular tourist attractions are within easy access of the hotel. The property also is a short walk from the city's most notable shopping, restaurants, bars and movie theaters.
"This is the first of more than 20 projects Duet India Hotels intends to develop throughout India over the next few years, which represents a significant and reliable pipeline of management contracts for us," said Leslie Ng, Interstate's chief investment officer. "Duet is targeting secondary and tertiary cities, areas where we believe the need for hotel rooms is most acute."
JHM Interstate Hotels India has a full corporate office located in Gurgaon, a major international corporate hub in India and a suburb of New Delhi. The corporate executives in Gurgaon are from India and the United States, with expertise in all aspects of hotel operations including sales and marketing, food and beverage, information technology, human resources, construction and design, and finance.
The Four Points(R) by Sheraton Jaipur, City Square amenities include a full-service restaurant, The Eatery, featuring both continental favorites and regional specialties, lounge, business center, free high-speed Internet access, health club, spa, outdoor pool, and 2,500 square feet of flexible meeting space. The 115 guestrooms and suites provide flat screen LCD TVs and the Sheraton Four Comfort(SM) Bed.
About JHM Interstate Hotels (India) Private Limited
JHM Interstate Hotels (India) Private Limited is a joint venture partnership between JHM Hotels, Inc. and Interstate Hotels & Resorts, Inc., formed to operate and invest in hotels in India. The company's corporate office is located in Gurgaon, India, a suburb of New Delhi. For more information about JHM Interstate Hotels India, visit the company's Web site: www.jhminterstate.com.
JHM Hotels, Inc., a premier lodging company based in Greenville S.C., with offices in Mumbai and Surat, India, has developed, acquired, owned and operated hotels throughout the United States for more than 36 years. The company currently owns and operates 42 U.S. hotels with more than 6,500 guestrooms and has over 500 additional rooms under development/construction, operating under such well-known brands as Marriott, Hilton, Starwood and Hyatt. For more information about JHM Hotels, visit the company's Web site: www.jhmhotels.com.
Interstate Hotels & Resorts, Inc. has ownership interests in 56 hotels and resorts, including seven wholly owned assets. Together with these properties, the company and its affiliates manage a total of 223 hospitality properties with more than 45,500 rooms in 37 states, the District of Columbia, Russia, India, Mexico, Belgium, Canada and Ireland. Interstate Hotels & Resorts also has contracts to manage 13 to be built hospitality properties with approximately 3,000 rooms. For more information about Interstate Hotels & Resorts, visit the company's Web site: www.ihrco.com.
This press release contains "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, about Interstate Hotels & Resorts, including those statements regarding future operating results and the timing and composition of revenues, among others, and statements containing words such as "expects," "believes" or "will," which indicate that those statements are forward-looking. Except for historical information, the matters discussed in this press release are forward-looking statements that are subject to certain risks and uncertainties that could cause the actual results to differ materially, including the volatility of the national economy, economic conditions generally and the hotel and real estate markets specifically, the war in Iraq, international and geopolitical difficulties or health concerns, governmental actions, legislative and regulatory changes, availability of debt and equity capital, interest rates, competition, weather conditions or natural disasters, supply and demand for lodging facilities in our current and proposed market areas, and the company's ability to manage integration and growth. Additional risks are discussed in Interstate Hotels & Resorts' filings with the Securities and Exchange Commission, including Interstate Hotels & Resorts' annual report on Form 10-K for the year ended December 31, 2008.
Interstate Hotels & Resorts
|Also See:||Interstate Hotels & Resorts Joint Venture Signs First Management Contract in India / April 2008|