ITC Hotels subsidiary Srinivasa Resorts Ltd has entered into an agreement with international chain Sheraton International Inc. for providing international publicity and marketing reservation services for the company's Grand Kakatiya Hotel and Towers.
The agreement has become effective from April 1, 1998, following which the hotel would now be known as the Welcomgroup Grand Kakatiya Sheraton Hotel and Towers. ITC Hotels expects that the tie-up would result in an increased flow of foreign visitors, thereby enhancing the foreign exchange earnings for Srinivasa Resorts.
The Grand Kakatiya, located in Hyderabad, turned in an impressive performance during the year and strengthened its market leadership. The hotel has been classified as a five-star deluxe by the department of tourism.
ITC Hotels' other subsidiary, Fortune Park Hotels, has two operating hotels and one is expected to open at Hyderabad very shortly. Negotiations are also underway for several other locations. ITC Hotels' presence in the south has been enhanced with the opening of Grand Bay at Visakhapatnam and Sullivan Court at Ooty under operating services agreements.
The turnover of the Welcomgroup chain at Rs 395 crore in 1997-98 is marginally higher than the previous fiscal. ITC Hotels says the hotels industry was adversely impacted by the adverse supply-demand situation which prevailed for the better part of 1997-98.
The year witnessed a slowdown in the tourism sector and the hotel industry in particular, owing to which hotel occupancies in both metro cities and tourism locations were adversely impacted. ITC Hotels has also entered into a joint venture for heritage hotels with Marudhar Hotels Pvt Ltd, which would develop, manage and market a chain of heritage hotels.
The venture, Maharaja Heritage Resorts Pvt Ltd, launched its chain on July 2, 1997.
The venture currently has 10 operating hotels and one mobile tented camp.
