IHG to invest $30-mn in India over next five years

Global hospitality chain InterContinental Hotels Group (IHG) is looking at investing $30-million in India over the next five-years.

The company has signed a joint venture partnership with Duet India Hotels Group (DIHL), the hotel investment arm of global asset manager Duet Group, to develop 19 new Holiday Inn Express hotels in India.

IHG will invest through a 24% equity stake.

"We are investing a small amount of our own capital in India along with a strategic partner who knows the market. We are developing the Holiday Inn Express brand across India keeping in view the strong economic growth and an expanding middle-class in India," IHG said in a statement.

"We forecast a strong demand for mid-market and select service hotels in the country," IHG's Chief Financial Officer Richard Solomons said.

These 19 Holiday Inn Express hotels will add around 3,300 rooms to IHG's current India development pipeline of over 10,000 rooms (46 hotels) and are expected to be operational by 2016, he added.

The hotels will be primarily located in India's major metros and key secondary cities, which are well positioned to drive growth and continued investment opportunities including New Delhi, Mumbai and Bangalore.

The company expects to have a 150-hotel presence by 2020. These hotels will address the needs of internationally branded and high-quality hotels for domestic travellers.

IHG operates around 2,075 Holiday Inn Express hotels and 494 hotels are under development around the world.