outside North America - Hilton to manage hotels
BEVERLY HILLS, Calif. - November 28, 2006 - Hilton Hotels Corporation (NYSE:HLT) today announced they will create a joint venture company (JV) in India with DLF Limited (DLF). The joint venture company plans to develop and own 75 hotels and serviced apartments over the next seven years. The formation of the joint venture is pending receipt of formal written approval from the Government.
The JV-owned hotels will represent several brands from the Hilton Hotels Corporation portfolio, including Hilton Hotels, Hilton Garden Inn, Homewood Suites by Hilton and Hilton Residences. The JV Company will develop and build these properties, while Hilton will manage them.
DLF will hold 74% in the JV Company, and Hilton will hold the remaining minority stake as a symbol of its commitment to the venture. Over the next five to seven years, Hilton will invest up to USD 143 million in the JV Company, before consideration of debt.
DLF is one of India's leading
real estate developers. Headquartered in Delhi and with significant operations
in the National Capital Region
The initial stage of the joint venture will involve 20 hotels in a number of key locations, including Chandigarh, Chennai and Kolkata. A large number of these hotels are expected to be Hilton Garden Inn properties -- a business hotel brand, offering focused service. Beyond the initial 20 sites, the JV Company will continue to identify and acquire sites and undertake new hotel developments.
Ian Carter, Executive Vice President, Hilton Hotels Corporation and CEO of Hilton International Operations, explained the attraction of the Indian market: "India is an outstanding market for hotel development, given its powerful combination of economics and demographics. Hilton will build on its collective experience in India and the opportunity with DLF is a compelling next step to capitalise on the development momentum and build our Hilton Family of Brands in India."
Shakti Singh, Director, Hospitality Business, DLF, said, "We are very excited about this venture with Hilton. We see tremendous opportunities for growth in the hospitality sector in India, given the attractive tourism and business avenues unfolding in the country. Through this strategic partnership, we are confident of bringing world-class hospitality and services across the country, further strengthening the benchmarks that DLF has established as a pan-Indian developer."
Hilton Hotels Corporation in India - Through its alliance with EIH, Hilton Hotels Corporation has nine existing franchised hotels in India under the Trident Hilton and Hilton brands. Another hotel is currently being developed by EIH and will be franchised as a Trident Hilton under this arrangement. These properties are managed by EIH while Hilton is responsible for international marketing, promotion and reservations through the Hilton global network. Hilton will manage five additional hotels under development -- Hilton Bangalore, Hilton Residences at Embassy Gold Links Bangalore, Hilton Chennai, Hilton Hyderabad Palace and Shilim Retreat by Hilton.
|Also See:||Accor and Dubai Based EMAAR Properties Developing 100 Formule 1 Hotels in India / November 2006|
|EIH and Hilton Launch Strategic Alliance - Eight Hotels in India Rebranded, Including the Flagship Oberoi Towers in Mumbai, Rebranded as Hilton Towers / April 2004|