Hilton in JV with DLF
By SiliconIndia | Wednesday, 29 November 2006, 06:00 Hrs
New Delhi: Beverly Hills-based Hilton Hotels Corp. has decided to get into a joint venture with India based DLF Ltd. to develop and own 75 hotels and service apartments over the next seven years. The JV will be 26:74 at an investment of upto $143 million.
Approved by the cabinet just last week, Hilton was also permitted to set up a wholly owned subsidiary in India for managing hotels, involving an investment of 1300 million. The JV-owned hotels will represent several brands from the corporationâs portfolio, including Hilton Hotels, Hilton Garden Inn, Homewood suites by Hilton, and Hilton Residences.
According to Hilton, they will hold a minority stake while DLF will hold a 74 percent stake in JV "as a symbol of its commitment to the venture."
The announcement comes a day after Accor of Europe tied up with Emaar MGF to set up 100 hotels in the next few years at an investment of $300 million.
Chandigarh, Chennai and Kolkata are the prime locations for the initial stage of the joint venture involving 20 hotels. 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 (EIH).
"India is an outstanding market for hotel development, given its powerful combination of economics and demographics," said Ian Carter, executive vice president of Hilton Hotels Corp. and CEO of Hilton International Operations.
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