US-based hospitality giant Hilton on Tuesday announced it would create a 26:74 joint venture with DLF to develop and own 75 hotels and service apartments in the country over the next seven years.
Hilton would invest up to $143 million in the venture, before raising debt, Hilton Hotels Corporation said in a release.
The announcement comes a day after Accor of Europe tied up with Emaar MGF to set up in the next few years 100 hotels at an investment of $300 million.
The Cabinet had last week approved Hilton International Company's investment in a joint venture with DLF. Hilton was also permitted to set up a wholly owned subsidiary in India for managing hotels, involving an investment of Rs 130 crore.
Thus, while the DLF-Hilton joint venture will develop and build the planned properties, Hilton will manage them. The JV-owned hotels will represent several brands from the corporation's portfolio, including Hilton Hotels, Hilton Garden Inn, Homewood suites by Hilton, and Hilton Residences.
"India is an outstanding market for hotel development, given its powerful combination of economics and demographics," Hilton executive vice-president Ian Carter said.
Hilton aimed to form with DLF one of the largest international hotel chains in India, the release said. In the initial stage, the venture will put up 20 hotels at key locations, including Chandigarh, Chennai, and Kolkata.
A large number of these hotels are expected to be Hilton Garden Inn, a business hotel brand, offering focussed service.
Hilton already has nine franchised hotels in India, under Trident Hilton and Hilton brands, through its alliance with the Oberoi family-controlled East India Hotels. These properties are managed by EIH, while Hilton is responsible for international marketing.
