Hilton Hotels Corporation, the international hospitality group, has announced its joint venture with DLF to develop and own 75 hotels and service apartments in India. The joint venture company, which will develop one of the largest international hotel chains in the country over the next seven years, is the first significant international expansion for Hilton Garden Inn outside North America.
The JV-owned hotels will represent several brands from Hilton Hotels Corporation's brand portfolio, including Hilton Hotels, Hilton Garden Inn, Homewood Suites by Hilton and Hilton Residences. It will also 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 5 to 7 years, Hilton will invest up to $143 million (approximately Rs 645 crore) in the JV company.
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 Inns - a business hotel brand, offering focused service. Beyond the initial 20 sites, it will continue to identify and acquire sites and undertake new hotel developments.
Ian Carter, executive vice president of 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) of 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."
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