Hilton Plans 10 Five-Star Hotels

Hilton International has drawn up plans to introduce ten five-star hotels in the country within the next ten years. The group is targetting New Delhi, Mumbai, Chennai and Bangalore.

Apart from giving management to franchisees, the group is considering various options including investments, equity participation, joint ventures, lease or contracts.

"We will pick up at least a 26 per cent stake in a project depending upon its strategic importance and financial returns," Hilton International Asia Pacific president Koos Klein said.

He added the group might look at fully owned hotels in future but "as of now, we are not looking at 100 per cent equity". Klien did not elaborate on the company's investment plans.

The group is in advanced stage of negotiations in New Delhi, Mumbai and Chennai and the deal is likely to be finalised within the next two months, Klien said. He said these were greenfield projects and were expected to come up within three years. The company plans to target secondary cities including Agra, Jaipur and Kochi in the second phase.

On whether or not the company would introduce other brands specially considering the growing importance of budget category (three- and four-star brands) in the country, the company officials said it would take only one step at a time. The company would first establish one brand and, depending on the response, would consider bringing other brands to the country.

Hilton has taken over the management operations of the Sanjay Khan-owned Gold Palms Resort in Bangalore. The resort, spread over 14 acre, will now be open for leisure traverllers.

The company today announced a strategic partnership with Interglobe Enterprises Ltd for sales and reservations services in India.

"The initiative will not only make travel more convenient for the Indian customer but also reinforce the presence of the already-known Hilton brand," Klein said.

Replying to a query on whether Hilton would be willing to takeover public sector hotels, Klein said there were no such plans because the company was not confident enough. "We plan to go slow and steady to build the brand image here," he said.

Hilton has about 2,185 properties around the globe under various brands. It is planning to add another 155 to its portfolio by making an open offer for a Scandinavian company, Scandic. The final decision is likely to be taken within few months.

Earlier, Hilton was running a five-star hotel in New Delhi on a contract which ended in 1998.