Global hospitality major Hilton after a wait-and-watch period, has finally decided to set up a 300-room premium 5-star hotel in Bangalore.
The Prestige Group will invest Rs 200 crore (Rs 2 billion) to build the hotel and Hilton will manage it, said Irfan Razack, chairman and managing director, Prestige Estates Projects.
The hotel is to be situated on a two-and-half acre plot at the intersection of Ulsoor Road and Kensington Road, within walking distance from M G Road. Construction is slated to begin by July, 2005, and the hotel will become operational by mid-2007.
Hilton operates 394 hotels, with some 253 branded Hilton and 141 Paciplus under the mid-market Scandic brand. In all, 47 come under the Hilton Worldwide Resorts. In Asi Pacific, the company is responsible for the management, sales, marketing and operations of 77 hotels.
Commenting on Prestige Group's foray into hospitality, Irfan Razack said, "We are known for our project innovations, be it in residential or commercial arena. Now we are continuing the trend in the hospitality sector."
On completion, the Hilton is likely to offer a soft loan to refinance the project, he added.
"For us, India holds great potential both as a rapidly-developing source of market for outbound travellers and as a fast-growing destination for international business and leisure arrivals," said Koos Klen, president, Hilton International, Middle East and Asia Pacific.
In addition to Bangalore, the company has plans for four premium 5-star city hotels and one resort in India, he added.
He declined to name the cities they will enter but said the resort will come up in Shillam village near Lonavla near Mumbai.
Koos Klen said that the company has embarked on an aggressive expansion policy that will see the opening of 25 additional Hilton-managed properties over the next three years in the Asia Pacific region.
The resort near Lonavla is being built on a 3,000-acre plot with 100 villas and will be positioned as a holistic retreat.
