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January 22, 2007 18:28 IST
New York-based Berggruen Holdings' Indian hospitality venture Berggruen Hotels on Monday announced plans to set up 38 budget hotels over the next five years at an investment of $100 million.
"We would look to invest in diversified India-focused business, including greenfield start-up chain of full service budget and mid-market hotels," Kabir Kewalramani MD, Berggruen Hotels said.
The company has already acquired land in Bangalore, Ludhiana, Kolkata, Thirivananthapuram, Nashik and Pune for the hotels, which will be under the brand name 'Keys'.
While the 100-170 room first hotel of the chain is expected to be operational by June 2008, work is on at 24 other sites, he added.
Berggruen Hotels aims to touch a turnover of Rs 350 crore (Rs 3.5 billion) by 2011 when all its 38 hotels gets operational and also plans to have resorts, service apartments under 'Keys'.
Berggruen Holdings was also planning to set up hotel management schools across the country with an investment of $5-10 million.
"We are in talks with a well-known international institute for this venture and the details are being worked out," said Kewalramani. To begin with, they plan to start two such schools each in Mumbai and Delhi by June this year and in 50 cities in next three years. The institute would offer one-year vocational programmes in six different modules. The company was looking at developing properties on a joint venture basis and would also follow the lease model. When asked if they would look at the sites being provided by Indian Railway Catering Tourism Corporation for developing budget hotels across the country, Kewalramani said: "We are exploring that option." Berggruen Holdings is a private company, which manages and invests its proprietary capital that exceeds $ 1.5 billion in range of asset class including private equity, stocks, bonds and real estate. In India, the company has invested in Sanghvi Movers and also recently invested in a real estate development project in Mohali in Punjab.
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