Inter-Continental, Bharat Hotels Join Hands

Inter-Contin-ental Hotels and Resorts yesterday announced its return to India by tying up with Lalit Suri-promoted Bharat Hotels for its Delhi property.

Daniel Desbaillets, Inter-Continental's president (Asia-Pacific), who was in Delhi in connection with the announcement of tie-up with Bharat Hotels for Hotel Inter-Continental New Delhi, said he was hopeful that the 219th hotel in their network would do well and will 'serve as a platform for us to introduce a number of new services such as Club Inter-Continental to the Indian market'.

For Bharat Hotels it is like coming a full circle. The Suris started off with Holiday Inn, a brand name owned by Bass group, and now have tied up with Inter-Continental, which was bought over by Bass group few months back.

 

In between, the Delhi property for slightly over two years was known as New Delhi Hilton. Bass group owns many brands under which it operates hotels including Holiday Inn, Crowne Plaza, Inter-Continental and Holiday Inn Select.

Under the management contract, Bharat Hotels will pay Inter-Continental 1.5 per cent of the total turnover and 3 per cent of the adjusted gross operating profit to Inter-Continental.

There will be just one expatriate positioned here in the form of a general manager, unlike during Hilton days when in the beginning there were at least seven expats here.

"But Bharat Hotels will continue to retain full control of financial matters pertaining to the New Delhi hotel, while Inter-Continental Hotels & Resorts would be responsible for day-to-day operations, implementation, integration and upgradation of the hotel to Inter-Continental's standards," chairman-cum-managing director of Bharat Hotels Lalit Suri said.

Bharat Hotels is also discussing with Inter-Continental the possibility of joining hands for its new properties in Mumbai, Goa and Srinagar which will be started under the registered brand name of Bharat Hotels, The Grand.

Suri said that the expansion plans would cost about Rs 300 crore and Bharat Hotels has already negotiated a $15-million loan with Merrill Lynch. While the Srinagar property will cost about Rs 60 crore, the Mumbai project will cost Rs 150 crore. The rest will be pumped into the Goa project.