Carlson, Chanakya To Float Country Inn Hotel Chain

The US-based $4.6 billion hotel major, Carlson Hospitality Worldwide has decided to form a joint venture with Delhi-based Chanakya Hotel Ltd to franchise, develop and manage in India the Country Inn brand of resorts to target the mid-segment clientele in big cities and hill stations.

In the joint venture, while Chanakya Hotel will hold 74 per cent equity stake, Carlson will pick up the rest of 26% stake.

Under this joint venture, the Chanakya-Carlson duo will have two more entities: one a management company and the second a (property) development company. The initial paid-up capital will be approximately $ 100,000.

 

The formal agreement between Carlson Hospitality Worldwide and Chanakya Hotels is expected to be signed in November though the joint venture has been agreed upon in principle, hotel industry sources told Business Standard. The sources also added that the details of an application for foreign investment promotion boards clearance for the joint venture is being finalised. However, Chanakya Hotels chief executive, Ranjan Bhattacharya or Carlson Hospitality Group Indias senior vice-president, K B Kachru, were unavailable for any comments. Chanakya Hotel Ltd is promoted by three entrepreneurs, including Bhattacharya and Pankaj Kodesia.

The joint venture envisages not only developing and managing new properties under the Country Inn brand, but also managing some existing properties