Due to conflict arising between the two parties regarding differences in commercial terms and conditions in the deal, Shiva Satya group has gone as far as replacing Crowne Plaza's branding on the property with its own. Earlier, Shiva Satya Group had bought the letter of intent (LoI) for a five start hotel property from city-based real estate developer Savvy Infrastructure Limited.
Following this, the developer group had begun talks with IHG for management contract of the hotel under the Crowne Plaza brand. In normal circumstances, IHG was set to open the five star 210-rooms huge Crowne Plaza Hotel on SG Highway in Ahmedabad by the second quarter of calendar year 2013.
However, now, the project has seen dispute between the two players which has slowed down the work.
"In recent times, differences have emerged regarding commercial terms and conditions between Shiva Satya Group and IHG. The differences have been so serious that Shiva Satya Group have resorted to 'posturing' wherein they have pulled down Crowne Plaza's branding on the property and replaced it with its own," said an industry source privy to the development.
According to the source, Shiva Satya Group has resorted to posturing since it intends to state that they can go solo with the project sans IHG if their terms are not met.
On its part, IHG still remains hopeful about the project. When contacted, Douglas Martell, Vice President - Operations, South West Asia said, "We are re-negotiating the deal with Shiva Satya Group. Our Crowne Plaza Hotel will surely come up on that property by the end of this year." However, a Shiva Satya Group spokesperson said that there were no re-negotiation taking place while refusing to comment further on the deal.
IHG's Crowne Plaza on SG Highway is one of the most talked about upcoming hospitality projects in Ahmedabad, along with Accor Group's Novotel and Starwood's Aloft.
While Novotel is yet to be launched, the 176-room Aloft hotel opened up recently in the city.